The case remains under investigation by the Internal Revenue Service Criminal Investigation. About a month ago, legendary soul singer Gladys Knight filed a lawsuit seeking to remove her name from the Chicken & Waffles restaurant franchise after it was hit with a slew of bad press from reported tax issues and financial mismanagement (click HERE if you missed that). Employers who fail to comply with their legal obligations will be held accountable." "Payroll taxes fund social insurance programs, including Social Security and Medicare, and are a large source of revenue for the federal government. "Hankerson willfully disregarded his tax obligations for many years," said Acting U.S. In November, a judge sentenced him to two years in prison and one year of supervised release and ordered him to pay restitution of over $1 million. Hankerson pleaded guilty to the charges on July 21, 2021. SeptemThis Monday, seven-time Grammy Award-winning recording artist Gladys Knight commenced a federal unfair competition lawsuit against her own son and his businesses in connection with a chain of Atlanta-area chicken and waffle restaurants bearing Knight’s name and likeness. This sentencing emphasizes that all employers, big and small, have equal responsibility to collect, report, and pay over their payroll taxes."
"Paying taxes is a way to give back to the community, but unfortunately Hankerson chose to use those funds for other means. "While ownership of a well-known restaurant in our community has its perks, it also comes with great responsibility," said IRS Criminal Investigation Special Agent in Charge James E. TAX AGENTS SHUT DOWN FORMER GLADYS KNIGHT'S CHICKEN AND WAFFLES Due to the issues in his parents' marriage, Shanga had a troubled childhood. The former couple agreed on a divorce settlement soon after this. Instead of doing this, however, authorities say Hankerson failed to fully remit over $1 million in payroll taxes due from at least 2012 to 2016. Advertisement In that period, Knight took Shanga to live with her in Las Vegas but later agreed to take him to Detroit so Barry could visit him, after initially refusing to do so. As the sole owner of the business, Hankerson and his company were required to withhold pay various payroll taxes, including taxes to pay for Social Security and Medicare.
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