Iowa businessman admits to not paying $85,000 in taxes

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Tax papers

CEDAR RAPIDS, Iowa (AP) — A Forest City businessman has pleaded guilty to failing to pay federal employment taxes.

The U.S. Attorney’s Office of the North District of Iowa says 60-year-old Darrell Smith entered the guilty plea Wednesday in a Cedar Rapids federal courtroom. Smith was indicted in January on counts of failing to collect, truthfully account for and pay federal employment taxes withheld from the wages of employees of Permeate Refining Inc., an ethanol-production business in Hopkinton, Iowa.

On Wednesday, Smith admitted to willfully failing to pay to the IRS more than $85,000 in employment taxes collected from the wages of workers for the second quarter of 2012. A sentencing date has not yet been set. He faces up to five years in prison and fines.