The U.S. Department of Justice and Rota Coconut Village Hotel have agreed that the U.S. government is entitled to judgment against the hotel for federal employment taxes and civil penalties in the total amount of $143,202.45 plus interest and other statutory additions.
DOJ Tax Division trial attorney Jeremy N. Hendon and Rota Coconut Village Hotel counsel Gregory J. Koebel informed the U.S. District Court for the NMI on Thursday about their agreement.
Hendon and Koebel said the federal employment taxes were for the 3rd and 4th quarter of 1998; 1st through 3rd quarters of 1999; all four quarters of 2000; the 3rd quarter of 2001; the 1st, 3rd, and 4th quarters of 2002; the 2nd and 3rd quarters of 2004; the 1st quarter of 2003; the 2nd through 4th quarters of 2006; all four quarters of 2007; and the 4th quarter of 2008.
The lawyers agreed that the hotel also owes the U.S. government civil penalties for the periods ending Dec. 31, 1997; Dec. 31, 1999; and Dec. 31, 2000.
The parties agreed that each shall bear their respective costs and attorney's fees.
Last July, the DOJ asked the court to issue a default judgment of $143,202.45 against the hotel for failing to answer or defend the U.S. government's lawsuit that was filed in September 2011.
DOJ said the hotel owes $98,203.48 in outstanding federal employment taxes and $44,998.97 in outstanding civil penalties, for a total of $143,202.45, plus interest and other statutory additions that continue to accrue from June 26, 2012.