Elizabeth Wood, Failure to Pay Employment Taxes, North Carolina 2020

Greensboro, North Carolina, has seen another high-profile case of tax evasion. Elizabeth Wood, 40, a business owner, was sentenced to 18 months in prison yesterday for failing to pay employment taxes. Wood's mother, Rebecca Adams, 57, was also involved in the scheme and is scheduled to be sentenced on July 9, 2020.

Wood and her mother operated a temporary staffing business under the names A & R Staffing Solutions, Inc., Wood Executive Services Inc., and Adams Staffing Enterprises Inc. They withheld federal and state taxes from employees' paychecks but did not pay those taxes over to the IRS or the State of North Carolina. This is not the first time Wood has been involved in tax evasion. In 2015, she pleaded guilty to embezzling employee state tax withholdings and was sentenced to prison. After her release, Wood resumed her role at the staffing business where she continued to withhold federal taxes from employees' paychecks, but again did not pay those taxes over to the IRS.

On February 5, 2020, Wood and her mother pleaded guilty to failing to pay over employment taxes. This is a serious crime that can have severe consequences for both the individual and the business.

U.S. Senior District Judge N. Carlton Tilley Jr. ordered Wood to serve three years of supervised release and to pay approximately $2,338,766 in restitution to the United States. This is a significant amount of money that will help to compensate for the harm caused by Wood's actions.

The investigation into Wood's tax evasion scheme was conducted by special agents of IRS-Criminal Investigation. The case is being prosecuted by Trial Attorney Kevin Schneider of the Tax Division and Assistant U.S. Attorney Frank Chut.

The failure to pay employment taxes is a serious crime that can have severe consequences. It is essential for businesses and individuals to comply with tax laws and regulations to avoid being charged with tax evasion.

Elizabeth Wood, Defendant/Respondent: Elizabeth Wood

Criminal Charges: Failure to Pay Over Employment Taxes

City and State: Greensboro, North Carolina

Exact Date: February 5, 2020

Sentence or Outcome: 18 months in prison, three years of supervised release, and approximately $2,338,766 in restitution

Dollar Amounts: $2,338,766 in restitution

Source: https://www.justice.gov/usao-mdnc/pr/greensboro-business-owner-sentenced-prison-employment-tax-fraud