A Lycoming County man has been sentenced for failing to pay employment taxes owed by his construction company.
According to the U.S. Attorney’s Office for the Middle District of Pennsylvania, James Michael Barr, 69, of Cogan Station, Pennsylvania, was sentenced to a time-served sentence plus 2 years of probation including 10 months of home confinement for failing to account for and pay over employment taxes owed by Barr Construction from 2017 through 2020.
Barr pleaded guilty in July 2024, to failing to account for and pay over employment taxes owed by Barr Construction from 2017 through 2020. During that time period, in addition to a normal paycheck from which taxes were withheld, Barr also paid his employees in cash and did not withhold federal taxes from the cash payroll or remit taxes owed to the Internal Revenue Service.
“Employers have a responsibility to their employees to withhold the proper amount of taxes and pay those taxes over to the IRS,” said Amy MacNeely, Acting Special Agent in Charge, IRS-Criminal Investigation, Philadelphia Field Office.
The sentence also imposed a $5,000 fine on Barr and required him to make restitution to the I.R.S. in the amount of $337,000 plus civil penalties.
This case was investigated by the Internal Revenue Service Criminal Investigation. Assistant United States Attorney Geoffrey W. MacArthur prosecuted the case.
WILLIAMSPORT – The United States Attorney’s Office for the Middle District of Pennsylvania announced that U.S. District Court Chief Judge Matthew W. Brann sentenced Barr.
Related Federal Cases
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- James M. Pelagalli, Tax Evasion Attempt, Ohio 2024 · Pennsylvania
Key Facts
- State: Pennsylvania
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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