Charleston Man Pleads Guilty to Federal Tax Crime

CHARLESTON, W.Va. - Luther A. Hanson, 71, of Charleston, pleaded guilty today to willful failure to pay over taxes.

According to court documents and statements made in court, from at least 2015 to September 2020, Hanson willfully and intentionally did not withhold or pay over approximately $149,905.37 in employment taxes to the Internal Revenue Service (IRS) for two employees of his accounting services businesses. Hanson owns, manages, controls and operates The Estate Planning Group Inc. and L.A. Hanson Accounting Services, and the two employees provided accounting and account services for both.

Hanson admitted that some time prior to June 30, 2015, he and the two employees agreed that he would begin treating them as independent contractors. Hanson further admitted that he knew this arrangement would relieve him of paying the employer portion of the employment taxes to the IRA and of withholding the employee withholdings of the two employees.

As a result of this arrangement, Hanson paid gross wages by check to the two employees even though neither changed their job duties or responsibilities. Hanson admitted that he knew that neither was an independent contractor while he paid each by check throughout their continued employment. Hanson further admitted that he did not pay the trust fund taxes to the IRS that were owed and did not pay over the employer's share of employment taxes for the two employees each quarter during the duration of this arrangement.

Hanson is scheduled to be sentenced on January 30, 2025, and faces a maximum penalty of five years in prison, up to three years of supervised release, and a $250,000 fine. Hanson also owes restitution in an amount to be determined by the Court.

United States Attorney Will Thompson made the announcement and commended the investigative work of the Internal Revenue Service-Criminal Investigations (IRS-CI) and the Federal Bureau of Investigation (FBI).

Senior United States District Judge John T. Copenhaver, Jr. presided over the hearing. Assistant United States Attorney Erik S. Goes is prosecuting the case.

A copy of this press release is located on the website of the U.S. Attorney's Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:24-cr-119.

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