Knight ended up suing Hankerson, who was also ordered to remove her name and likeness from his businesses. The following month, it was reported by the AJC that Hankerson’s employees told investigators he used the money for sex parties and marijuana. In June 2016, the Georgia Department of Revenue shut down Hankerson’s three restaurants and he was arrested. This sentencing emphasizes that all employers, big and small, have equal responsibility to collect, report and pay their payroll taxes.” Gladys Knight & son Shanga / Getty “Paying taxes is a way to give back to the community, but unfortunately Hankerson chose to use those funds for other means. The federal lawsuit filed Friday says the Gladys Knight's Chicken and Waffles restaurants are failing and damaging the 'Midnight Train to Georgia' singer's reputation. “While ownership of a well-known restaurant in our community has its perks, it also comes with great responsibility,” IRS Criminal Investigation Special Agent James E. ATLANTA (AP) Singer Gladys Knight is suing to remove her name from the Atlanta restaurants owned by her son, who is charged with stealing 650,000 in taxes owed to the state of Georgia. As the employer, Hankerson’s companies were required to withhold federal taxes from employees, according to prosecutors.įrom at least 2012 to 2016, Hankerson failed to fully remit more than $1 million in payroll taxes due, according to the U.S. Brown sentenced Shanga to two years in prison, one year of supervised release, and he was ordered to pay restitution of $1,039,310.65.In 1997, Hankerson opened his first restaurant, Gladys Knight’s Chicken and Waffles, in Atlanta and then expanded to other locations. From at least 2012 to 2016, Hankerson failed to fully remit over $1 million in payroll taxes due. As the sole owner, Hankerson was the responsible person, and he had the responsibility to collect, truthfully account for, and pay over payroll taxes due. Collectively, these withheld taxes are referred to as “payroll taxes.” Specifically, employers are required to file, one month after the conclusion of the calendar quarter, an Employer’s Quarterly Federal Tax Return, setting forth the amount of payroll taxes due.Īn individual is responsible for collecting, accounting for, and paying over the payroll taxes if he or she has the authority required to exercise significant control over the employer’s financial affairs. This sentencing emphasizes that all employers, big and small, have equal responsibility to collect, report, and pay over their payroll taxes.”Īs an employer, Hankerson’s companies were required to withhold from employees’ gross pay Federal Insurance Contributions Act (“FICA”) taxes, which represent Social Security and Medicare taxes, and federal income taxes. “While ownership of a well-known restaurant in our community has its perks, it also comes with great responsibility,” said IRS Criminal Investigation Special Agent in Charge James E. Employers who fail to comply with their legal obligations will be held accountable.” “Payroll taxes fund social insurance programs, including Social Security and Medicare, and are a large source of revenue for the federal government. “Hankerson willfully disregarded his tax obligations for many years,” said Acting U.S. In 2016 is when things started to take a turn for the famous chain. The first location opened in 1997 and is located in D.C and Atlanta. The Singers’ son Shanga Hankerson, 45, has been sentenced to two years in prison after he failed to withhold payroll taxes for his Chicken & Waffles restaurants. Glady’s Knight’s son is in some trouble with the IRS these days.
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