Georgia businessman sentenced for failing to pay more than $2.4M in payroll taxes

Date: Aug. 27, 2024

Contact: [email protected]

Newnan, GA - Barry Lee White has been sentenced to federal prison for willful failure to pay more than $2.4 million in payroll taxes.

"Payroll taxes fund important social insurance programs, including Social Security and Medicare," said U.S. Attorney Ryan K. Buchanan. "White refused to pay payroll taxes after withholding those funds from his employees' paychecks for years - stealing from his employees and United States taxpayers. Employers who fail to comply with their legal obligations will be held accountable."

"Employment tax evasion is stealing from the government and the American taxpayer," said Demetrius Hardeman, Special Agent in Charge, IRS Criminal Investigation, Atlanta Field Office. "Business owners are entrusted to collect and turn over IRS withholding taxes; not doing so may affect employees' future social security and Medicare benefits. Investigating employment tax fraud is very important to IRS Criminal Investigation. Our special agents will work hard to ensure those who engage in this criminal activity are held accountable."

According to U.S. Attorney Buchanan, the charges and other information presented in court: Between 2012 and 2019, White owned and operated, at different times, two construction maintenance and electrical companies: I-Barr Construction, Inc. and T-Line Construction, LLC. As an employer, White's companies were required to withhold from employees' gross pay Federal Insurance Contributions Act (FICA) taxes, which represent Social Security and Medicare taxes, and federal income taxes. Collectively, these withheld taxes are referred to as "payroll taxes."

As the sole operator of the companies, White had the responsibility to collect, truthfully account for, and pay the IRS the payroll taxes. From at least 2015 to 2018, White withheld over $1.8 million in payroll taxes from his employees but failed to pay the taxes to the IRS. In addition, White was required to pay a certain portion of Social Security and federal unemployment tax for the companies; however, he failed to pay more than $600,000 for the employer's portion of the payroll taxes.

White, of Carrollton, Georgia, was sentenced to one year and 10 months in prison to be followed by three years of supervised release. He was also ordered to pay restitution in the amount of $2,499,473.07. White was convicted of these charges on May 7, 2024, after he pleaded guilty.

This case was investigated by IRS Criminal Investigation (CI).

Assistant U.S. Attorneys Angela Adams and Erin N. Spritzer prosecuted the case.

CI is the criminal investigative arm of the IRS, responsible for conducting financial crime investigations, including tax fraud, narcotics trafficking, money-laundering, public corruption, healthcare fraud, identity theft and more. CI special agents are the only federal law enforcement agents with investigative jurisdiction over violations of the Internal Revenue Code, obtaining a more than a 90 percent federal conviction rate. The agency has 20 field offices located across the U.S. and 12 attaché posts abroad.

Public link

Please use the above public link if you want to share this noodl on another website.