The Justice Department has again demonstrated its willingness to prosecute corporate executives for failing to remit employment taxes. On March 22, 2019, the Department of Justice issued a press release to announce that the U.S. District Court for the Eastern District of North Carolina sentenced a North Carolina man to 30 months in prison, restitution of $1.686 million, and three years of supervised released following completion of his sentence. The executive served in various official capacities for OneCare, Inc., a mental health service provider, including as the corporation’s President. From 2010 to 2013, OneCare withheld, but failed to pay over, employment taxes in the amount of almost $1.7 million. On May 2, 2018, the executive was charged with, among other charges, one count of Willful Failure to Collect or Pay Over Tax. He ultimately entered into a plea agreement that required him to plead guilty to a single count of Willful Failure to Collect or Pay Over Tax.
Continue Reading Justice Department Continues Aggressive Enforcement for Trust Fund Tax Failures