Canfield physician incarcerated for tax crimes

A physician from Canfield was sentenced to six months in jail and ordered to pay $105,673 after failing to pay over Social Security, Medicare and employment taxes collected from his employees, said U.S. Attorney Justin E. Herdman and Ryan L. Korner, Acting Special Agent in Charge, Internal Revenue Service Criminal Investigation, Cincinnati Field Office.

Nicholas M. Garritano, 55, previously pleaded guilty to willful failure to pay over taxes. 

"This doctor took out the taxes from his employees but kept the money for himself," Herdman said. "He victimized his workers and those who paid their fair share of taxes."

"As the person who controlled the finances on behalf of Dr. N.M. Garritano, Inc., Dr. Garritano was entrusted with the significant responsibility to collect and turn over all IRS withholding taxes," said Korner. "His failure to pay over the withheld taxes not only affected the revenue to the United States government, but more importantly, it affected the employees’ Medicare and Social Security benefits."

During 11 quarters spanning from 2009 through 2012, Garritano was president and sole shareholder of a corporation run by the name “Dr. N.M. Garritano, Inc.,” located in Canfield. Garritano was responsible for the corporation’s business and financial operations. Garritano caused the corporation to pay taxable wages and salaries to its employees, from which federal income and FICA taxes were withheld, according to court documents.

Garritano filed quarterly forms with the Internal Revenue Service on behalf of the corporation relating to the employment taxes. Although the corporation withheld substantial employment taxes from the wages of its employees for each quarter, the defendant failed to pay over the full amount of the withheld taxes to the IRS, according to court documents.

The case is being prosecuted by Assistant U.S. Attorney Matthew B. Kall following an investigation by IRS-CI.