Manassas Business Owner Guilty of Tax Fraud

An Arizona man failed to pay over $1.1 million in taxes on behalf of his employees

An Arizona man pleaded guilty Tuesday for failing to pay more than $1.1 million in taxes he was required to pay on behalf of his Manassas, Va., employees.

Willard Douglas Kerr, 43, ran a Manassas-based painting and wall covering company called DK Coatings.

According to court documents, Kerr was responsible for collecting, accounting for and paying employment taxes to the IRS on behalf of his employees between 2003 and 2009.

From at least Sept. 30, 2004, through Dec. 31, 2009, Kerr withheld the funds for taxes from his employees’ paychecks but failed to pay those taxes to the IRS, authorities said.

Kerr also failed to pay the employer matching portion of FICA taxes between 2003 and 2009.

The defendant admitted to spending the money on other aspects of the business and on personal expenses.

Kerr faces a maximum of five years in prison. His sentencing is scheduled for June 29.

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