U.S. District Court ordered the owner of now closed Donut Connection stores in Milford, Georgetown, and Harbeson, DE to file its federal payroll tax returns on time and pay federal payroll taxes as they become due.
According to a release from the U.S. Attorney’s office for Delaware Chel-C Ventures said that it closed the stores after the United States filed its civil complaint in this case.
The order directs Chel-C Ventures and its owner, Elva Davidson of Sussex County to file the returns and pay the taxes on time if the business starts operating again. The injunction is effective immediately.
According to a federal civil complaint in the case, Chel-C Ventures repeatedly failed over a period of years to fully pay its payroll taxes.
The court order also determined that Chel-C Ventures was liable for more than $645,000 in federal payroll taxes, penalties and interest and that Davidson was personally liable to the United States for more than $250,000.
Chel-C Ventures and Davidson agreed to the entry of the court’s order, but did not admit to the allegations in the United States’ civil complaint in the case. Click on link below for copy of the court filing.
Chel-C Ventures Judgment and Order of Permanent Injunction
Acting Assistant Attorney General Caroline D. Ciraolo of the Tax Division thanked the revenue officer of Internal Revenue Service’s Field Collection for investigating and preparing the civil case.
