Stormy Daniels's attorney Michael Avenatti is a tax defaulter - and his firm withheld $1.3 MILLION in payroll taxes from workers then failed to pay the IRS

Stormy Daniels's attorney agreed to pay $2.4 million in tax and charges but failed to make a payment last week, federal prosecutor reveals in court 

He missed installment of more than $440,000, federal judge in Los Angeles is told as Avenatti's firm is ordered to pay $10 million to ex-worker

Jason Frank had alleged the law firm failed to pay a $4.85 million settlement he had reached in December and which was personally guaranteed by Avenatti

Eagan Avenatti, in which Avenatti is 'managing member and majority equity holder' was told $10 million was 'what's approriate'

Ubiquitous television presence declined to discuss what he called 'irrelevant nonsense'; he is representing Daniels through another firm

Michael Avenatti, the attorney representing Stormy Daniels, defaulted on a personal payment to the IRS and one of his two law firms failed to pay the government $1.3 million it had withheld in payroll taxes, it emerged Tuesday.

The disclosures emerged as a federal judge in California ordered a law firm in which Avenatti is the 'managing member and majority equity owner' to pay $10 million on Tuesday to a lawyer who claimed that the firm had misstated its profits and that he was owed millions.

The judgment came after Jason Frank, who used to work at Eagan Avenatti, alleged that that the law firm failed to pay a $4.85 million settlement he had reached in December. 

He said in court papers that the settlement was personally guaranteed by Michael Avenatti, who has garnered national attention as the attorney for Daniels, the porn actress who is suing President Donald Trump following an alleged 2006 affair.

Failed to pay: An assistant U.S. attorney revealed in a a Los Angeles court that Michael Avenatti had not made a payment last week and had agreed to personally pay a total of $2.4 million in taxes and charges


Client: Michael Avenatti has become one of the country's highest-profile attorneys by representing Stormy Daniels in her legal fight against the president and Michael Cohen, Trump's attorney

'At this point, that's what's appropriate,' Judge Catherine Bauer said of the $10 million award, according to the Los Angeles Times.

Frank did not immediately return a telephone message seeking comment.

He had worked at Avenatti's firm under an independent contractor agreement and was supposed to collect 25 percent of the firm's annual profits, along with 20 percent of fees his clients paid, according to court documents. 

He resigned in May 2016 after alleging that the firm didn't pay him millions of dollars that he was owed, misstated the firm's profits and wouldn't provide copies of tax returns and other financial documents.

During Tuesday's hearing, assistant U.S. attorney Najah Shariff said Avenatti had not made a payment that was due last week for unpaid taxes as part of the agreement that was reached in January.

Court records show Avenatti had personally agreed to pay about $2.4 million in back taxes, interest and penalties.

$1.3 million of that figure was payroll taxes which Eagan Avenatti had withheld from employees but not turned over to the IRS, the Los Angeles Time disclosed. 

It said he blamed the issue on a payroll company, which he did not name. 

The paper said that Avenatti had been due to pay just over $440,000 last week but had failed to pay and that federal authorities would file a motion demanding payment.

Avenatti had paid $1.5 million of the $2.4 million already, the court heard. 

Thom Mrozek, a spokesman for the U.S. attorney's office in Los Angeles, said lawyers from that office represent the government in bankruptcy court when there's a debt to a government agency, like back taxes or unpaid student loans.

Avenatti told The Associated Press that he would not discuss 'irrelevant nonsense' and wouldn't answer specific questions about the case.

Court documents show Avenatti is the 'managing member and majority equity holder' of Eagan Avenatti and 'solely owns and controls' another firm, Avenatti & Associates, which represents Daniels.

He told the Los Angeles Times that it was 'purposely confusing me with a separate legal entity that has no role in the Daniels case'.

However the newspaper said it had emails from him about the Daniels case from an Eagan Avenatti email address and with an Eagan Aveantti signature.

DailyMail.com also has email messages relating to the Daniels case from an Eagan Avenatti address. 

Daniels, whose real name is Stephanie Clifford, has said she had an affair with Trump in 2006 and has sued to invalidate the confidentiality agreement she signed days before the 2016 presidential election that prevents her discussing it. 

She's also suing Trump and his personal attorney, Michael Cohen, alleging defamation.