United States of America v. AmericanWay Management Corporation et al

Filing 6

CONSENT JUDGMENT and STIPULATED ORDER OF PERMANENT INJUNCTION in favor of United States of America against AmericanWay Management Corporation in the amount of $ 2,004,646.62. Signed by District Judge Barbara B. Crabb on 2/5/16. (jat)

Case: 3:16-cv-00026-bbc Document#: 5-1 Filed: 02/01/16 Page 1of8

JN TIIE UNITED STATES DISTRlCT COURT FOR THE
WESTERN DISTRlCT OF WISCONSIN
UNITED STATES OF AMERICA,

)
)
)
)

Plaintiff,

v.

) CnseNo. 3:16-cv-26-bbc
)

AMERICANWA Y MANAGEMENT

)
)
)
)
)

CORPORATION, and

JANIS NOW AK.
Defendnnts.

CONSENT JUDGMENT AND
STIPULATED ORDER OF PERMANENT INJUNCTION

-

This matter comes before the Court upon the Joint Motion for Enlry of

Consent Judgment and Stipulated Order of Permanent

Tnjunc~ion

by plainUIT,

United States of America, ond defendants, Jonis Nowak and AmericnnWay
Management Corporation.

Pursuant to the mollon. it Is hereby ORDERED,

ADJUDGED, AND DECREED thot
1.

The Motion is GRANTED.

2.

Judgment is entered in favor of the United States nnd against

ArnericanWay Management Corporation in the amount of $2,004,646.62, plus
such statutory interest from August 7, 2015 until fully paid. for the following

liabilities:
Type of Tax

- • "'fax Period -~- - Unpaid A!.scss~d Bllloncc Plu!I Interest

and other Statutory Additions to Tnx
.___.___~----"--------_,-T_b_ro_u_....gb August G, 2015 _

I

.

Exhibit
A

Case: 3:16-cv-00026-bbc Document#: 5-1 Filed: 02/01/16 Page 2 of 8

Form 941 ·

3/31/2008

Form 941

6/30/2008

$62,571.92

Form 941

9/30/2008

·- - -

$12,140.89

{69,862.72

··-· -·· .

_____

____ --

Form 941

12/31/2008

$111,613.25

Form 941

3/31/2009

$145,138.24

Form 941

6/30/2009

$67,835.25

Form 941

9/30/2009

$82,060.83

Form 941

12/31/2009

$60,856.79

Form 941

3/31/2010

$6~,624.26

Form 941

09/30/2010

$4,609.86

Form 941

1213112010

$5,115.72

Form 941

9/30/201 J

$8,344.66

Form 941

12/31/2011

$18,154.75

Form 941

3/31/2012

$137,232.53

Form 941

6/30/2012

$109,818.80

Form 941

9/30/2012

$8,365.58

Form 941

12/31/2012

·-$1,41-8.53

Form 941

3/31/2013

$4,904.85

Form 941

6/30/2013

$9,782.97

Form 941

9/30/2013

St 79,665.87
-

_.._.._

----

...

Form 941

·-·~ -

12/3112013
..

...

-· ..

--- .. -··- --

-

Sl32,3tS.89

-2

.

-

·-

'

-- ·· -·-·-

-- -_,,,._ --- - -· ·- .... ------·
--.. - - ~ ··-

Case: 3:16-cv-00026-bbc Document#: 5-1 Filed: 02/01/16 Page 3 of 8

Fonn 941

3/31/2014

$149,338.96

Form 941

6/30/2014

$165,634.02

Form 941

9/30/2014

$153,988.00

Form 941

12/31/2014

$144,207.91

Fonn 941

3/31/2015

$70,944.57

Form 940

12/31/2009

$5,300.39

Form 940

12/311201 I

$537.46

Form 940

12/31/2012

$610.88

Form 940

12/31/2013

SI 1,500.74

12/31/2014

$4,736.64

12/31/2012

$409.89

-

Form 940
Form 1120

3.

Judgment is entered in favor of the United States and against Janis

Nowak in lhe amount of $861,543.01, plus such statutory interest from August 7,
2015 until fully paid, for the following liabilities:

--- ...

Tax Type
-26

U.S.C.

·-

Tax Period

§ 6672, Trust 12/3112008

Unp11id Assessed Bnlnncc ·Plus Inlcrcsl
and other Statutory Additions to Tax
Throu 2h Au2ust 6, 2015
$40,648.37

Fund Recover:Y Penalty
26 U.S.C. § 6672, Trust 3/31/2009

$.60,482.78 - - ·-- ·--

fund Rccov_e~nal!l'.._
26 U.S.C. § 6672, Trust 6/30/2009

$46,628.62

Fund Recovc~enal ty
26 U.S.C. § 6672, Trust 9/30/2009

·---S45,208.45

•

Fund Recov~rxJ.>e_~J!:r. ______ ----· _. ___ . _

--·

-·-·

---- - _____ _
...

. ....

Case: 3:16-cv-00026-bbc Document#: 5-1 Filed : 02/01/16 Page 4 of 8

26 U.S.C.

'f6612,

Trust -1213Tfi609

Fund Recovery Penalty
§ 6672, Trust
Fund Recovery Penalty
26 U.S.C. § 6672, Trust
Fund Recovery Penalty
26 U.S.C. § 6672, Trusl
.Fund Rccovcn;~~lty_
26 U.S.C. § 6672, Trust
FuncJ Recovery Penalty
26 U.S.C. § 6672, Trust
Fund Recovery PenaltY
26 U.S.C. § 6672, Trust
Fund Recovery PennltY.
26 U.S.C. § 6672, Trust
Fund Recovery Penalt_y

i'6 ifs:c.

$38,386.02

3/31/2010

$37,038.06

W3 l/2010

$75,069.91

12131/2013

$74,787.52

3/3112014

$73,197.78

26 U.S.C. § 6672, Trust 6/30/2014

-

$73,245.10

9/3012013

·-- _
.....

$68,241.49

6/30/2012

•

$554.77

3/31/2012

-- ----

$74,088.98

·-

----

Fund Recovery Pcnaltl
$74,560.13

26 U.S.C. § 6672, Trust 9/30/2014

Fund Recovery Penalty
$79,405.03

26 U.S.C. § 6672, Trust 12/3112014

Fund Recovery Pennlty
4.

An injunction is entered against AmericanWay Management

Corporation ("AmerlcanWe.y") and Janis Nowak ("Nowak") as follows:
a. Parties Covered by Injunction: This injunction binds Nowak nnd

Amcri.canWay as well as AmericanWay,s officers, shareholders,
agents, employees, and persons in concert or participation with
them. Where the tenns of the injunction require American Way to
lake aclion, such requirement shall equally apply to uny future
business which Nowak controls, manages, or owns. Additionally,

where the tenns of the injunction require AmericanWay to take

4

.

Case: 3:16-cv-00026-bbc Document#: 5-1 Filed: 02/01/16 Page 5 of 8

action, such requirement shnll equally apply to Nowak insofar ns she
shall be required lo ensure that American Way or any future business
takes the required actions.
b. Withholding Requirement:

AmericanWay shall withhold federal

income taxes and Federal lnsurnnce Contributions Acl ("F[CA")
taxes (which include Social Security and Medicare taxes) from the
wages of ArncricnnWa.y's employees when wages are pnid.
c. Deposit Requirements:

In accordance with federal deposit

regulations, American Way shall timely make deposits to the IRS
using the Department ofTrenspry's Electronic Federal Tax Payment
System (.. EFTPS") of withheld income and FICA taxes, as well as
AmericanWay's share of FICA taxes and Federal Unemployment
Tax Acl ("FUTA") taxes.

d. Reporting Requirements: Within three (3) days after American Way
makes a timely federal tax deposit as required by paragraph 4.c.
above, AmericanWay shall send by fax to IRS Technical Advisor
Pat Kosmatka at 414-231-2123, or to such other IRS employee

designated

by the ms, the receipt, deposit slip, or other proof that

the tax. deposit hns been mode, and n copy of the payroll report
showing the amount that should be deposited. Nownk shall also sign
and deliver an affidavit to Kosmatka, or to such other person or

.
location as the IRS designates in writing, on the first day of each
5

Case: 3:16-cv-00026-bbc Document#: 5-1 Filed: 02/01/16 Page 6 of 8

month, stating that Nowak has personally ensured thut for each pay
period during the prior month, the required federal income tnxes,
FICA, and FUTA taxes were fully deposited and timely made.
e. Return Requirements: AmericanWny shnll timely file with the IRS
all of Its Form 94 I, Employer's Quarterly Federal Tax Return, and
Form 940, Employer's Annual Federal Unemployment Tax Return,
tax returns al the address and in the manner identified in tl1e
Instructions for Form 941 and Instructions for Form 940, both of
which are available at www.irs.gov.

Within three (3) days afier

filing the Fonns 940 nnd 941 with the JRS, AmericanWay shall fox
copies of the filed Forms to Kosmatka or to such other IRS
employee designated by the IRS.
f. EmpfoYmcnt Tax Priority: From the dale this injunction is entered,

AmericanWay shall be prohibited from paying its other creditors
before timely paying its Form 941 and Form 940 tax liabilities as
they come due.

g. Transfer Prohibition: AmericanWay and Nowak and those persons
in concerl or participation with American Way are prohibited from
trnnsfening, disbursing, or

ns~igning

ony of their money, property,

or assets after the date of the injunction order if the Fonn 941 and
Form 940 liabilities required by paragraph 4.c. of this Order have not
been fully made for any tax period,

6 .

Case: 3:16-cv-00026-bbc Document#: 5-1 Filed: 02/01/16 Page 7 of 8

h. Notil.icnlion of New Business:

AmericanWny shall

nolify

Kosmatka, or such other IRS employee who is designated by the
IRS, if American Way merges with nnothcr company, assumes a new
name, or transfers substantially all of Its assets to another entity .

.

Nowak shall notify Kosmatka, or such other IRS employee who is
designated by the IRS, of any new company Nowak may come to
own, manage, control, or work for. American Way and Nowok shall
notify the IRS within 10 days after any of those actions.

i. J;:nforcement of Injunction: The United States shall be pennitted to
issue discovery requests during the teem of the injunction to nssure
AmericanWay and Nowak nre complying with the injunction. The
Court shall retain jurisdictio~ of this action for the purposes of
implementing and enforcing this Injunction and entering all
additional decrees and orders necessary and appropriate for the
public interest

5.

The clerk of court shall enter this judgment.

Dated this .i"~ay

or'kb,.uur 201f..

UNITED STATES DISTRJCT JUDGE
Dated:

7

Case: 3:16-cv-00026-bbc Document#: 5-1 Filed: 02/01/16 Page 8 of 8

r

I

Agreed and Consented to:
Dated:

Caroline D. Ciraolo
Acting Assistant Attorney General
TaxDMsio

I

I

/ DeWitt Ross & Stevens
By
~

I

I

i
t

i
'

Hilaric Snyder
Allison Yewdcll
United Stoles Department of Justice
Tax Division
P.O. Box 7238
Ben Franklin Station
Washington, DC 20044
Telephone: [phone]
I [e-mail]

-.

·---

I?~/~

uglu H. razer
13935 Bishop's Drive, Sulle 300
Brookfield, WI 53005
Telephone: [phone]
• Fax: [phone]

[e-mail]
Counsel foe Defendants, AmericanWay
Management Corporation and Janis Nowak

Counsel for Plaintiff, the United States
American Way Management Corpora lion
Janis Nowak

By:~
NOWak

rJ. ..

,

~~

8

By:

~ ~

Janis ~sident