Maryland Contractor Fails to Report Cash Wages

IRS auditors in Montgomery County, Maryland, recently found that a local lawn-maintenance company violated county law by not disclosing cash payments made to their employees on tax forms. JRP Management Resources Inc. had approximately 24 contracts with the county--totaling more than $2 million--over the last four years.

According to the County’s Office of Internal Audit, besides paying workers with unreported cash, the company also failed to give them the required $12.40 an hour minimum wage, and did not pay all of owed overtime money.

According to its website, JRP has been in business since 2001 and provides services in Maryland, Virginia, D.C. and Philadelphia. The major contractor employs about 50 full-time employees and lists Montgomery County, the Maryland State Highway Administration and Washington Suburban Sanitary Commission among its clients.