Tuesday, March 8, 2016

Nancy Hoffmann's Lankford Protective Services take who "has had $7.2 million in federal tax liens filed against it"

"Security Firm’s Millions in Tax Liens Make County Think Twice

The very existence of Guilford County government relies on people paying their taxes.  However, Lankford Protective Services Inc. – the security company the county uses heavily for security, and is about to use more – has had $7.2 million in federal tax liens filed against it.

Sam Lankford, who owns and runs the company, said that amount had been paid down to under $2 million and that the rest of the debt would be taken care of soon."

..."The City of Greensboro has more at stake in its contract with Lankford Protective Services Inc. than Guilford County because the city’s contract with Lankford is larger.

The city’s contract, which was approved in February 2014, is for an estimated $1.2 million a year, with possible extensions for a total of five years and an amount of $6.2 million.

But the city contract does have a clause that states that Lankford is responsible for paying its taxes.  The clause states, “Lankford Protective Services assumes full responsibility for the payment of all assessments, payroll taxes, or contributions, whether State or Federal, as to all employees engaged in the performance of work under this contract.”

According to the federal tax liens placed against Lankford, the company failed to pay its employee withholding taxes, which is how it ran up a $7.2 million debt to the federal government.

Not paying withholding taxes for employees is particularly egregious because it was not Lankford’s money.  The money belonged to the employees and was withheld from their paychecks to pay their taxes to the federal government.

What the federal government is alleging in this case is that Lankford withheld the money from the employees, but did not pay that money to the federal government."