On October 7, the Department of Justice (DOJ) announced that Kenneth Marston, a Massachusetts business owner, pleaded guilty to willfully failing to collect, account for, and pay payroll taxes owed by his companies. Marston owned and operated Bowmar Steel Industries Inc., a steel fabrication company, and Teleconstructors Inc., a cell phone tower installation company. Both businesses were required to withhold payroll taxes from employees’ wages and remit them to the IRS.
According to the DOJ, Marston was responsible for withholding Social Security, Medicare, and income taxes from employees’ wages. But from March 2015 through December 2018, he allegedly failed to withhold or pay those taxes on approximately $3.8 million in wages. The government estimates a tax loss between $550,000 and $1.5 million.
Marston will be sentenced on January 3, 2025, and could face up to five years in prison. The court may also impose restitution, monetary fines, and supervised release.
Payroll tax compliance can present challenges for many businesses. Mistakes in this area, even if unintentional, can lead to investigations and legal consequences. For companies navigating these challenges, seeking legal counsel is essential. Experienced attorneys can help businesses assess their compliance practices, address any potential issues before they escalate, and defend against government investigations.
The attorneys at Chilivis Grubman represent clients of all types and sizes in connection with white-collar crime matters, government investigations, and tax-related cases. If you need assistance with such a matter, please contact us today.
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