Gladys Knight’s Son Shanga Sentenced To Two Years For Withholding Chicken & Waffles Restaurant’s Payroll Taxes

Glady’s Knight’s son is in some trouble with the IRS these days. 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. The first location opened in 1997 and is located in D.C and Atlanta. In 2016 is when things started to take a turn for the famous chain.

“Hankerson willfully disregarded his tax obligations for many years,” said Acting U.S. Attorney Kurt R. Erskine. “Payroll taxes fund social insurance programs, including Social Security and Medicare, and are a large source of revenue for the federal government. Employers who fail to comply with their legal obligations will be held accountable.”

“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. Dorsey. “Paying taxes is a way to give back to the community, but unfortunately Hankerson chose to use those funds for other means. This sentencing emphasizes that all employers, big and small, have equal responsibility to collect, report, and pay over their payroll taxes.”

The U.S. Department of Justice reports:

As 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. 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.

An 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. 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. From at least 2012 to 2016, Hankerson failed to fully remit over $1 million in payroll taxes due.

U.S. District Judge Michael L. 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.