Eric Holub, Tax Withholding Fraud, Cedar Rapids IA, 2023

Cedar Rapids man Eric Holub, 45, has pleaded guilty to a federal charge of failing to forward taxes he withheld from his employees’ paychecks. The admitted owner of Premier Security, located in Cedar Rapids, Iowa, Holub served as the company’s president and treasurer from 2003 to 2011.

According to court documents, Holub admitted that between January 2008 and December 2009, he was responsible for withholding income taxes and Federal Insurance Contributions Act (FICA) taxes from his employees’ pay. However, he failed to forward these withholdings to the Internal Revenue Service (IRS), accumulating a total of approximately $400,000 in unpaid taxes.

In addition to the unpaid payroll taxes, Holub also admitted to failing to pay other taxes owed by Premier Security from 2008 through 2011. The IRS Criminal Investigation highlighted the serious nature of employment tax evasion, noting that it not only results in lost tax revenue but can also lead to the loss of future social security or Medicare benefits for employees.

Sybil Smith, Special Agent in Charge of IRS Criminal Investigation, emphasized the detrimental consequences of such actions. Holub now faces a possible maximum sentence of five years’ imprisonment, a $250,000 fine, and one year of supervised release following any imprisonment.

The case is being prosecuted by Assistant United States Attorney Anthony Morfitt, and the investigation was led by Internal Revenue Service Criminal Investigation. Sentencing before Chief Judge Linda R. Reade will be set after a presentence report is prepared. Holub remains free on bond pending sentencing.

More information about the court case can be found at https://ecf.iand.uscourts.gov/cgi-bin/login.pl, where the case file number is 13-32.