George Avlos, 45, pleaded guilty Wednesday to evading federal income taxes and failing to pay payroll taxes for employees of his Fort Smith business, LinLex Inc. Avlos was the sole owner and president of the company, which provides consulting services as they relate to Department of Transportation regulations.
Avlos failed to file a federal income tax return for 2006, a year in which he made nearly $200,000. He also pleaded guilty to failing to pay all the necessary payroll taxes for his employees in 2007 and 2008. Specifically, the crimes involved the Internal Revenue Service’s Form 941, which is due several times throughout the year.
He faces a maximum sentence of five years in prison and a fine of $250,000 for his personal financial woes, and a maximum sentence of one year in prison and a fine of $100,000 for those he caused his employees. He could also be ordered to pay restitution.
The case was investigated by IRS-Criminal Investigation and prosecuted by Assistant U.S. Attorney David R. Ferguson.
Northwest Arkansas, Pages 11 on 02/28/2013