Wednesday, February 29, 2012

Leonie's Response to USA Today Article

Updated: Recent coverage in USA Today looked at the issue of outstanding tax obligations on the part of Leonie’s owners. As of March 23, 2012 all tax obligations for Leonie’s owners have been met.

As background: in the last few years, Leonie experienced some financial challenges not unusual for a government contractor of its size. Because of those challenges, Leonie’s owners deferred their shareholder compensation so that the company would have the funds available to meet its contractual obligations. As a result, the owners were unable to meet their personal tax obligations on time.

At no time did Leonie’s owners seek to avoid their responsibilities as taxpayers. Both owners have been faithfully paying their tax liabilities through installment plans with the Internal Revenue Service (IRS), including substantial late fees and penalties. The remaining federal tax liabilities were paid in March 2012. They would have been paid much sooner, but for the fact that Leonie was awaiting a significant client payment, which was ultimately paid in March, 2012. Thus, this matter has been fully resolved.

The issues described above relate solely to the owners’ personal tax obligations and have no bearing on the company or the important work it does. Leonie is an LLC, and as such, the tax obligations flow through to the owners. Leonie is up-to-date on all of its federal and state corporate tax obligations.

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