Garner Resident Faces up to Five Years in Prison for Failing to Pay Over Employment Taxes

WILMINGTON, N.C. – A Sharon Coker Burke, of Garner, N.C., pleaded guilty today for willfully failing to pay over employment taxes withheld from employee paychecks to the federal government.  At sentencing set for the March 7, 2023 term, Burke faces a statutory maximum of 60 months in prison, a $250,000 fine, and three years of supervised release.

According to court documents and other information presented in court, Burke co-owned and managed the tax and financial affairs Bear Creek Landscape Associates, a commercial landscaping business headquartered in Garner.  In her position, Burke was responsible for ensuring the timely filing of federal employment tax returns (Forms 941) for the business and the payment of all associated taxes—namely, amounts withheld from the paychecks of Bear Creek employees, including federal income taxes and Federal Insurance Contributions Act (FICA) taxes allocated for Social Security and Medicare programs.  However, between 2003 and 2021, Burke routinely failed to pay over the withheld taxes to the Internal Revenue Service (IRS) as required, resulting in a tax underpayment of more than $800,000.  During this same period, in response to IRS collection activity, Bear Creek rebranded itself as “KBE Landscaping” initially and, later, as “KB Landscaping.”  But under Burke’s stewardship as the responsible officer, the successor companies continued to accrue significant employment tax liabilities due to non-payment.

Michael Easley, United States Attorney for the Eastern District of North Carolina, made the announcement after arraignment by Chief U.S. District Judge Richard E. Myers II. IRS Criminal Investigation investigated the case.  Assistant United States Attorney Adam F. Hulbig prosecuted the case for the government.

Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:22-CR-289-M.