By Cherrie Anne E. Villahermosa
Variety News Staff

A CONSTRUCTION company was sued by the federal government for failing to turn over an employee’s income tax amounting to $51,122.32.
The U.S. Attorney’s Office filed the lawsuit against Sablan Construction yesterday in federal court.
According to Jeremy N. Hendon, trial attorney for the tax division of the U.S. Department of Justice, Sablan Construction failed or refused to surrender property or rights to property that was subject to an Internal Revenue Service levy.
The complaint stated that on Aug. 1, 2005, the IRS issued and served by mailing to Sablan Construction a notice of levy on wages, salary and other income and a notice of taxes due for employee Rita Sablan Palacios.
Palacios is an employee of the construction company and receives wages from the firm.
On Feb. 8, 2005, a delegate of the secretary of the treasury made separate assessments of liabilities against Palacios for her failure to collect, truthfully account for and pay over the withheld income and Federal Insurance Contributions Act taxes for tax periods ending June 30, 2001, Sept. 30, 2001, Dec. 31, 2001, March 31, 2002, June 30, 2002, Sept. 30, 2002, Dec. 31, 2002, March 31, 2003, June 30, 2003 and Sept. 30, 2003.
The complaint stated that despite proper notice and demand for payment of the assessments, the taxpayer has neglected, failed, or refused to make full payment of the assessed amounts to the U.S. government and, as of Oct. 25, 2006, the sum of $51,122.32 plus statutory interest remains due and owing.
The complaint stated that on Sept. 1, 2005, the IRS issued and served Sablan Construction with a final demand for payment providing that if the company did not comply with the notice of levy within five days, then the IRS will consider the failure to comply as a final refusal and may begin proceedings under 26 USC 6332.
The complaint stated that more than 21 days have passed since the service of the notice of levy upon Sablan Construction, which refused to surrender or pay to the U.S. government any wages, salary, commissions or any property or rights to property held by the company for Palacios.