Owner of North Carolina High Performance Car Business Pleads Guilty to Employment Tax Crime

WILMINGTON, N.C. – North Carolina businessman George William Taylor Jr. of Wilmington pled guilty today to not paying more than $2 million in employment taxes and not filing employment tax returns.

“The vast majority of working Americans pay their fair share in taxes, supporting our nation’s infrastructure, education, and national security.  But for years this businessman took millions from employees’ paychecks, supposedly for taxes, and spent it to pad his business and personal expenses,” said U.S. Attorney Michael Easley.  “Tax cheating like this undermines faith in our system and can’t be tolerated in honest business.  Hardworking taxpayers won’t stand for it, and neither will the IRS.”

According to court documents and statements made in court, Taylor, owned and operated National Speed, a high-performance automotive services business. As the chairman and president of National Speed, Taylor was responsible for withholding Social Security, Medicare, and income taxes from employees’ wages and paying those taxes to the IRS.  From 2014 through 2021, Taylor withheld the taxes, but did not pay those withholdings over to the IRS, nor did he file the necessary employment tax returns. During the same period, he also did not pay the employer’s share of those taxes to the IRS.

In total, Taylor caused a tax loss to the IRS of $2,272,072.

“Employment tax evasion results in the loss of tax revenue to the United States government and can cause financial hardship to employees in the form of lost or delayed social security or Medicare benefits,” said Special Agent in Charge Donald “Trey” Eakins, Charlotte Field Office, Internal Revenue Service Criminal Investigation (IRS-CI). “Failure to pay over withheld taxes is a serious offense. Business owners have a responsibility to withhold income taxes for their employees and then remit those taxes to the IRS. CI special agents will pursue anyone who collects these taxes and uses the funds for their own personal gain.”

Taylor is scheduled to be sentenced on November 19, 2024, and faces a maximum penalty of 5 years in prison. He also faces a period of supervised release, restitution, and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division, U.S. Attorney Michael Easley, of the Eastern District of North Carolina made the announcement.

IRS Criminal Investigation is investigating the case.

Trial Attorney Brian Flanagan of the Tax Division and Assistant U.S. Attorney Ethan Ontjes of the Eastern District of North Carolina are prosecuting the case.