Suspected Tax Fraud Gets Mayfield Heights Man Charged

Correction: An earlier version of this story incorrectly stated Daniel Day had been arrested. He has only been charged.

MAYFIELD HEIGHTS, OH — Police have charged a Mayfield Heights man for failing to pay $420,000 in taxes that he withheld from his employees, IRS says. Daniel Day, 59, has been charged with 17 counts of failure to pay over taxes.

Day was the owner of Academy Answering Service, U.S. Attorney Justin E. Herdman said in a statement. The company was a telephone messaging service.

Day had a payroll company which prepped payroll checks for Day's employees. The company withheld the proper amount of taxes from each employee and prepared documents for Day to make quarterly employment tax payments to the IRS, according to information provided by the U.S Attorney's Office for the Northern District of Ohio.

Starting in 2008, Day told the payroll company to stop making quarterly employment tax payments to the IRS. He reportedly told the company to cease the payments because of "cash flow problems."

Day then stopped making employment tax payments between 2008 and 2013, according to the IRS and the DOJ.

In 2008, Day directed the payroll company to discontinue making quarterly employment tax problems to the IRS due to “cash flow problems.” Day then failed to make payments of AAS employee taxes between 2008 and 2013, according to the information. He collected $420,286 in employee taxes over that time.

The investigation into Day was led by the IRS.

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