Georgia Owner of Long-Term Care Facilities Sentenced to Two Years in Prison for Attempting to Obstruct IRS

A Georgia man was sentenced Friday to two years in prison for obstructing the IRS in its efforts to collect employment taxes.

According to court documents and statements made in court, from at least 2003, Douglas K. Mittleider, of Adairsville, operated long-term care facilities throughout the United States and was responsible for paying the IRS the federal income and Social Security and Medicare taxes withheld from employees’ wages. In June 2004, the IRS assessed against him personally the employment taxes Mittleider had not paid—also known as the Trust Fund Recovery Penalty. Beginning in at least November 2011, Mittleider took multiple steps to conceal business funds and impede the IRS’s ability to collect his outstanding tax liability. Among other things, Mittleider directed the commingling of funds among businesses he controlled and used funds for purposes other than to pay the IRS. Mittleider also caused the creation of new operating companies and bank accounts to make it more difficult for the IRS to locate assets and levy accounts. In total, Mittleider’s conduct caused a tax loss to the IRS of more than $17 million.

In addition to the term of imprisonment, U.S. District Judge Thomas W. Thrash Jr. for the Northern District of Georgia ordered Mittleider to serve one year of supervised release and to pay $17,080,566 in restitution to the United States.

Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division made the announcement.

IRS Criminal Investigation investigated the case.

Senior Litigation Counsel Sean Beaty and Trial Attorneys Ashley Stein and Andres Chinchilla of the Justice Department’s Tax Division prosecuted the case.