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The Internal Revenue Service (IRS) has taken legal action against Ottley Communications Corp., the owner of WSTA radio station on St. Thomas, demanding payment of more than $2.1 million in overdue unemployment taxes. The lawsuit, filed in U.S. District Court, outlines the company’s failure to meet its federal tax obligations, including unpaid taxes, late filings, and penalties. The IRS has been attempting to bring Ottley Communications into compliance since 2017, but their efforts have been unsuccessful.

According to the lawsuit, Ottley Communications owes federal employment tax liabilities dating back a decade, from the fourth quarter of 2003 to the second quarter of 2022. In addition to unpaid taxes, the company has incurred penalties and interest due to late filings and non-compliance. The total amount owed to the federal government, including penalties and interest, surpassed $2.1 million as of October 2022.

Since 2017, the IRS has made multiple attempts to address Ottley Communications’ tax deposit and payment obligations. These efforts included filing federal tax liens, serving levies on the company’s bank. However, these administrative actions have failed to bring the company into compliance, resulting in a continuous accumulation of unpaid tax liabilities, a practice referred to as “pyramiding.”

As Ottley Communications persists in disregarding federal tax laws and accumulating additional unpaid employment tax liabilities, the IRS has taken the matter to court. The complaint emphasizes that the company’s ongoing violations of federal tax laws have prompted the need for legal intervention.

Ottley Communications Corp. was established in 1984 by Athniel “Addie” Ottley, a former Virgin Islands senator and lieutenant governor. However, the company filed for Chapter 11 bankruptcy in 2017 and subsequently failed to comply with the required follow-up procedures. The bankruptcy trustee moved to dismiss the case in 2018 due to the company’s failure to file monthly operating reports and questionable employment practices.

As the case unfolds in court, it serves as a reminder of the importance of fulfilling tax responsibilities and the potential repercussions of persistent non-compliance with federal tax laws. The Tax Lawyers at Tomes Law Firm have been helping their clients with back taxes and audits with relief from the IRS.

If you need help with your back taxes contact the Tax Lawyers at Tomes Law Firm today for a free confidential strategy session. Call 732-333-0681 today before it is too late.