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<< Previous   of   Next >>   ADVERTISEMENT   CONTACT THE HERALD Robert Frank, City Editor frank@heraldnet.com   Published: Tuesday, May 6, 2008 IRS charges Snohomish woman with failing to pay workers' taxes By Jim Haley Herald Writer A Snohomish business owner collected nearly $360,000 in federal taxes from employees' paychecks but failed to turn the money over to the IRS, according to a federal court indictment. Lynda J. Mead, 50, owner of CM Flooring Inc. and Carl Mead Flooring Design, was charged with eight counts dating back to 2002, according to the indictment made public Monday. She made her first court appearance Monday in Seattle and pleaded not guilty in front of U.S. Magistrate Judge James Donohue. Mead was charged with willful failure to pay over taxes, in this case money meant for Social Security and Medicare portions of the federal employment tax. Mead was being held at the Federal Detention Center in SeaTac pending a detention hearing Wednesday. Her trial is scheduled in front of U.S. District Judge Ricardo Martinez on July 14. According to court documents, Mead was responsible for collecting, accounting for and paying trust-fund portions of the taxes to the IRS. She allegedly collected the money but didn't forward it from April 2002 through 2006. That money is supposed to go into the accounts of employees for future Medicare and Social Security benefits. At one point in 2005, after being contacted by the IRS, Mead filed some of the forms related to the withheld funds but never made payment to the IRS, according to court papers. Kenneth Hines, IRS special agent in charge in the Northwest, said failing to hand over withholding taxes is not only criminal but also detrimental to workers because the workers may not be credited with having paid the taxes. The case was investigated by Internal Revenue Service Criminal Investigation. Reporter Jim Haley: 425-339-3447 or jhaley@heraldnet.com.

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