Fort Smith Businessman Sentenced on Federal Tax Charges

George Avlos, president and owner of LinLex Inc. of Fort Smith, was sentenced Monday to 30 months in prison for failing to pay over employment taxes, and 12 months for federal income tax evasion.

The sentences will be served concurrently, according to a news release.

U.S. District Court Judge P.K. Holmes also sentenced Avlos to pay $291,760 to the IRS.

As president of the company, Avlos was responsible for collecting, truthfully accounting for and paying over LinLex’s payroll taxes.

During 2007 and 2008, LinLex withheld payroll taxes from its employees’ paychecks but failed to make all necessary payroll tax payments to the IRS.

Beginning in March 2007 through September 2008, LinLex further failed to file quarterly employment tax returns on a timely basis with the IRS.

In the seven calendar quarters, LinLex failed to account for and pay over a total of approximately $109,543.40 in payroll taxes. In addition, Avlos failed to file a personal income tax return for 2006, a year in which he had an income of approximately $200,000.