Hanover man sentenced to 15 months in federal prison for failing to pay $1.69 million in employment [View all]

Hanover man sentenced to 15 months in federal prison for failing to pay $1.69 million in employment taxes for physical therapy company


A Hanover man was sentenced to 15 months in federal prison for failing to pay employment taxes to the IRS for his physical and occupational therapy business, the Maryland State’s Attorney’s Office announced Tuesday.

Harshe Shende, 57, owns Progressive Rehab Services, LLC, a company based in Owings Mills that employs therapists who treat nursing home residents. He failed to pay a total of $1,690,000 in federal employment and employer taxes. As part of his prison sentence, Chief U.S. District Judge James K. Bredar ordered Shende to pay the amount back in restitution.

Shende pleaded guilty to filing forms with the IRS showing the amount of income tax he collected from employees, including their benefits, but failed to pay employment taxes to the IRS. He also failed to pay his employers’ portion of taxes, according to the Maryland State’s Attorney’s Office.

Shende opened two separate bank accounts in 2008 and 2012 for an incorporated company Progressive Health Group, Inc. and listed the same address assigned to Progressive Rehab Services, LLC. He billed his Rehab employees work using the name Progressive Health and paid their salaries using the incorporated company’s bank account. That account withheld payroll taxes from its employees’ paychecks, including federal income taxes, Medicare and social security taxes.

Read more: https://www.capitalgazette.com/news/crime/ac-cn-hanover-employment-tax-federal-prison-20210727-pxozwq2l65adtfrx47lgmbc4ji-story.html
(Annapolis Capital Gazette)