City of Paducah sues Fleming Furniture store for withholding payroll taxes

We’re learned about a lawsuit on Tuesday against the owners of a store you and your family may have done business with. The city of Paducah is suing the owners of Fleming Furniture store.

The Paducah Code of Ordinances requires employers to give 2 percent out of employees’ pay to the city for licensing fees or payroll taxes. The lawsuit says Kelley-Wiggins Furniture, Inc., which does business as Fleming Furniture and owners Dan and Karen Kelley, failed to do this in June 2013, March 2015, June 2015 and Sept. 2015.

As of Jan. 1, the city’s attorney, Geordie Garatt says Fleming Furniture owes the city more than $32,000. A bench trial is set for Aug. 2, but Garatt has requested summary judgment to avoid a trial.

"I don’t think that there’s any way that Fleming Furniture can say we withheld taxes and paid them to the city. There’s just no basis to argue that they don’t owe those taxes," Garatt said.
Garatt is still waiting to see if the judge grants the summary judgment. We called Dan Kelley for comment, but he didn’t respond. We also reached out to the attorney listed in the case, but he said he is no longer representing Kelley.

The Kentucky Labor Cabinet and U.S. Department of Labor are also investigating Fleming Furniture on behalf of employees. 

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