Lackawanna Bus Co. Owner Facing Payroll Tax Charges

SCRANTON – Michael Runco, 56, of Olyphant, Pennsylvania, is facing serious charges for a payroll tax scheme that has reportedly cost the Internal Revenue Service (IRS) nearly $79k. According to federal prosecutors, Runco operated Runco Transportation, Inc., which provided school bus services for the Mid Valley School District in Lackawanna County.

Runco’s alleged offense spanned from 2006 through 2010, during which time he employed as many as a dozen individuals. Despite withholding employee taxes, prosecutors claim Runco failed to remit these funds to the IRS on his employees’ behalf. Additionally, Runco is accused of failing to report personal income received from his company on his 2010 tax return.

United States Attorney Bruce D. Brandler announced that the charges against Runco were filed under a plea agreement, which he must adhere to fully cooperate with the IRS and pay all taxes owed, including interest and penalties, as determined by the court.

The investigation was conducted by the Scranton Office of the IRS, with Assistant United States Attorney Todd K. Hinkley handling the prosecution. Runco is presumed innocent until proven guilty in court.

Criminal informations are mere allegations, and a sentence following a conviction will be imposed by the Judge, considering federal sentencing statutes, guidelines, and various factors such as the nature of the offense, defendant’s history, and public safety needs.

Under federal law, Runco faces up to eight years in prison, supervised release, and fines for these offenses. The maximum penalty is not a guarantee of the actual sentence, which will be determined by the court based on individual circumstances.