Additional plaintiffs are alleging that Moresource, Inc. mismanaged their payroll funds, including the Boone County Fire Protection District.
The payroll management company was sued for negligence and breach of contract by TrueSon Exteriors in July after the home remodeling company discovered the IRS never received $77,193.15 in payroll taxes Moresource had drawn from the company’s account, according to previous Missourian reporting. By the time TrueSon was notified by the IRS, $30,000 in fees and penalties were added to the original amount owed.
TrueSon then had to pay the original principal to the IRS out of pocket, the suit filed in 13th Circuit Court alleged.
Court documents state Moresource would not tell TrueSon Exteriors what happened to their money.
TrueSon isn’t the only company whose payroll taxes didn’t make it to the IRS.
The following organizations have been added to the case as plaintiffs:
- Pulse Medical Staffing, LLC
- Cleek’s, Inc.
- The Pet Fair, LLC
- Advanced Drywall, Inc.
- Spectrum Studios, LLC
- John Glennon d/b/a Jostens
- Boone Supported Living, LLC
- Seville Woodworks, LLC
- Jakes Grill and Bar, LLC
- Boone County Fire Protection District
- Fidelis Support Services, LLC
“Everyone is just jumping into this lawsuit because all these businesses’ money was taken, and we don’t know where it went, but we know it didn’t go to the IRS,” said attorney Timothy Gerding, who is representing TrueSon and several other clients in their action against Moresource.
The Mozambique Orphanage Fund, a small nonprofit organization that supports orphans and vulnerable children in Mozambique, Africa, also received notification from the IRS in June that it owed around $2,000 in tax liabilities for the fourth fiscal quarter 2019, according to previous Missourian reporting.
An initial hearing for the lawsuit was held Sept. 14, in which all parties agreed to allow the addition of the new plaintiffs to the case. Additional hearings have not been scheduled yet.
Total losses are estimated at $740,000, pending further information from the IRS.