First Priority Pay / Payroll Fraud: FPP took our money but did NOT deposit taxes or file tax returns
We had hired a payroll firm “First Priority Pay” (FPP) http://www.firstprioritypay.com/ located in Hoboken, NJ for processing our employees' monthly payroll. They started working for us in 2008. Last year (2009), we started receiving notices from the IRS about unpaid dues and FPP said they would pay the dues promptly. And they did pay some of them. However, we received another set of notices from the IRS this year (2010) about more unpaid dues. We then contacted FPP about it and received an email from the President, Mr. Jerry Carter that someone had embezzled money and they were working to get the money back.
Meanwhile, we found out that over $17, 000 had NOT been paid to the IRS (the amount is actually close to $19, 000+ including penalties and interest) even though the money had been already taken out of our account. The IRS and the State also informed us that the third quarter returns had not even been filed and asked us to file them ASAP. Only then, the IRS will let us know the exact amount of penalties and interest they would charge for the third quarter.
After some initial contact, FPP did not respond to our repeated requests for refunding our money and filing the forms. They have committed fraud with not only our company but with many other companies nationwide. When we called the Hoboken Police Station, they said that they were familiar with FPP since they had numerous complaints from many companies nationwide.
This company took all our money PLUS charged their own service fees every single month but they neither deposited the taxes with the IRS nor performed their services as required. Now they say that they do not have the necessary man power to even answer their clients who rightfully need the money to pay their taxes.
We have spent numerous days researching the situation, filing paperwork, contacting the authorities, etc. This company needs to be investigated for fraud. We request you to investigate this matter and help us bring this to light. Thank you for helping us.