Robert W. Joyce, Willful Failure to Collect and Pay Over Taxes, Massachusetts 2014

Paving Company Owner Charged with Tax Fraud

BOSTON – A Chelmsford paving company owner has been charged with a payroll tax scheme that resulted in a $300,000 tax loss, according to federal authorities.

Robert W. Joyce, 59, of Carlisle, was charged with one count of willful failure to collect and pay over taxes. A plea hearing has not yet been scheduled.

It is alleged that for tax years 2012 through at least 2014, Joyce paid a portion of the wages to employees of his two companies, Allied Paving and Allied Equipment, “under the table.” He did so by paying them from his own personal bank account, rather than through the business accounts. In doing so, Joyce did not collect, account for, or pay the IRS the income withholding and FICA taxes that he, as the employer, was required to.

Joyce also allegedly caused Allied Paving and Allied Equipment to file false returns with the IRS which underreported the actual wages he paid his employees, as well as the employment taxes due to the IRS. In total, Joyce caused a loss to the IRS of at least $331,060.

The charging statute provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000, or twice the gross gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

United States Attorney Andrew E. Lelling and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston made the announcement today. Assistant U.S. Attorneys Sandra S. Bower and Sara Miron Bloom of Lelling’s Criminal Division are prosecuting the case.

Joyce is expected to face a judge in federal court in the coming weeks. The case is a stark reminder of the importance of tax compliance and the consequences of failing to pay one’s fair share.

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