By Sharyn L. Decker
Lewis County Sirens news reporter
CHEHALIS – Charging documents in the case of a Lewis County business accused of stealing for failing to remit $46,000 in sales taxes suggest the company’s troubles began when it fell into default on its tax obligations.
BK Rife Enterprises LLC opened in 2002, specializing in pole barns, garages and cement work, and over time got behind on its taxes, so in September 2008, the Washington State Department of Revenue revoked BK’s certificate of tax registration, according to the documents.
Edward and Karina Rife were co-owners, but it was Karina who interacted with the state agency over the years, seeking to reinstate the certificate, according to authorities.
Karina Rife, 43, is charged with first-degree theft, second-degree perjury and engaging in business with a revoked tax registration. Her court file shows a Chehalis address.
The criminal charges were filed Jan. 29 and Karina Rife appeared before a judge on Friday afternoon in Lewis County Superior Court.
Defense attorney Joely O’Rourke told the judge her client is a state employee, working as a fiscal analyst for the investment board, bringing home about $3,000 per month which supports herself, her husband and her child. O’Rourke said the situation meant Karina Rife qualified for a court-appointed lawyer.
Charging papers state she was informed the process to get the certificate of tax registration reinstated included paying the back taxes due as well as posting a bond, and told more than once that operating without the certificate was a felony.
But she indicated the business was not operating, or that it had only done a few isolated jobs, according to the documents.
The state alleges she knowingly filed falsified tax returns between 2007 and 2013 to hide the company’s business activity.
Charging documents allege BK operated continuously until 2013, with most of its invoices showing sales tax charged to and collected from its customers. The information came from a tax examination after the state agency discovered building permits had been issued for contracting work done by BK.
Lewis County Deputy Prosecutor Eric Eisenberg said Karina Rife is the only one of the two owners charged with the crimes, because the state has evidence she was put on notice of the various issues.
Local attorney Jacob Clark will represent her. Her arraignment is scheduled for Thursday.
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For background, read “News brief: Local builder faces theft charges for failing to remit sales tax to state” from Wednesday February 11, 2015, here
If mrs. Rife was living large, she should be prosecuted. If was just surviving and trying to keep her employees, it should be considered. Small business dont get away with much.
So very true Bill.
there goes that state job… was she totally clueless or did she just think she was above the law.
A lot of these construction businesses were devastated in the great recession starting in 2007. They would take whatever Jobs they could find and their customers might not always wanted to pay sales tax. They were under a lot of pressure to cheat just to keep little work going.
If they collected the tax and didn’t forward it to the state that’s stealing the state’s money. If they didn’t collect the states money from the customer I don’t think that’s as serious.
At a time when the government was bailing out the banksters when they were still receiving multi-million dollar bonuses, should We be so harsh on a little business trying to survive fudging a bit on their taxes?
And why are these guys the scapegoats when most small construction guys were doing the same thing?