Press Release
Raleigh Car Dealership Owner Pleads Guilty in Tax Fraud Scheme
For Immediate Release
U.S. Attorney's Office, Eastern District of North Carolina
“For five years, this auto dealer took money from their employees’ paychecks, supposedly for taxes, and then pocketed it for themselves,” said U.S. Attorney Michael Easley. Blatant fraud like this undermines faith in our system, and we won’t allow it in North Carolina.”
TAF was required to pay over the withheld payroll taxes to the Internal Revenue Service (IRS) through periodic deposits. In addition, TAF was required to file, at the end of each calendar quarter, an Employer’s Quarterly Federal Income Tax Return (Form 941) setting forth the total amount of wages and other compensation subject to withholding, the total amount of income tax withheld, the total amount of FICA taxes due, and the total tax deposits.
In her position at TAF, the defendant was responsible for collecting, truthfully accounting for, and paying over the payroll taxes due and owing from TAF to the IRS. Between 2016 and 2021, TAF continuously failed to meet its payroll tax obligations to the IRS, resulting in a substantial underpayment of tax. She faces up to 5 years in prison.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina, made the announcement after United States Magistrate Judge Robert B. Jones, Jr. accepted the plea. Sentencing will occur before United States District Judge Louise W. Flanagan later this year. The IRS-CI is leading the investigation, and Assistant U.S. Attorney Ethan Ontjes is prosecuting the case.
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. 5:23-CR-363-FL.
Updated April 16, 2024
Topics
Financial Fraud
Tax
Component