Amanda Ouellette, who owns Daddy O’s restaurant on Route 26 in Oxford with her husband Aaron, pleaded guilty Monday in U.S. District Court to failure to pay employment taxes she collected from her employees to the IRS.
According to a written statement from U.S. Attorney Thomas E. Delahanty II, from 2008 to 2013 Ouellette, 38, of Mechanic Falls paid wages on a regular basis to several employees. She withheld federal income and FICA taxes from employees’ gross pay, but from 2009 through 2013 did not file quarterly federal income tax returns and pay those collected taxes to the IRS as required by federal law.
The 1950s-style Daddy O’s restaurant opened in 2008 on Route 26 and, seeking a larger space, moved to Oxford Plaza earlier this year. The owners have served free Thanksgiving community meals to those in need since the restaurant opened; in 2015 they donated $3,650 to the Helping Hands Food Pantry in Oxford and a heating assistance fund to help Oxford residents in need keep warm.
Since January of this year the Ouellettes have hosted a monthly series of community dinners for free or a donation. Proceeds go to a different food pantry each month.
According to James Chapman, the U.S. Department of Justice prosecutor in this case, Amanda Ouellette pleaded guilty to one count of failure to account for and pay employment taxes “specifically with respect to the employment taxes due for the third quarter of 2013.”
“In her plea agreement, however, she also agreed to pay total restitution in the amount of $114,487, representing the amount of employment taxes that she owes for the first quarter of 2009 through the fourth quarter of 2013,” Chapman said.
Ouellette faces up to five years in prison and a $250,000 fine.
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