William H. White and Sarah A. White, Failure to Pay Over Employment Tax, Nebraska 2023

Related Federal Cases

Berkshire Hathaway to Pay $896,000 Civil Penalty · New Hampshire
Laurel Man Sentenced for Filing False Tax Returns · Texas
Nebraska Woman Sentenced for Tax Fraud · Alabama
Thomas Campbell Sentenced to Prison for Filing False Tax Return, Omaha NE, 2023 · Nebraska
Paul P. Worthing, No Crime Description, San Francisco CA, 2023 · Texas

Table of Contents

Payroll Tax Evasion Lands Nebraska Couple in Hot Water

A Roca, Nebraska couple’s business dealings have landed them in serious trouble with the law. William H. White, 55, and Sarah A. White, 40, were sentenced on March 21, 2023, for their role in failing to pay over employment tax to the Internal Revenue Service.

The couple, who owned two businesses, B&B Midwest Trucking (B&B) and 419, LLC (419), withheld federal income taxes and FICA taxes from employees’ paychecks between 2015 and 2018. However, they failed to account for the taxes on time and pay them over to the IRS. The withheld employee payroll taxes totaled $144,220.31 for B&B and $281,827.44 for 419.

According to court documents, the Whites were aware of their obligation to pay the payroll taxes but instead used the funds to pay business creditors and personal expenses. The businesses had sufficient funds available to pay the payroll taxes when due.

William White was sentenced to one year and one day imprisonment, to be followed by three years of supervised release. Sarah White was sentenced to three years of probation and a fine of $10,000. Both were ordered to pay $426,047.75 restitution, minus payments they had made previously totaling the same amount.

“Business owners have a significant duty to collect and turn over all IRS withholding taxes,” said Thomas F. Murdock, Special Agent in Charge, IRS Criminal Investigation, St. Louis Field Office. “Those who fail to do so gain an unfair competitive advantage. The failure to abide by IRS laws will not be tolerated, and those criminals will be prosecuted to the fullest extent of the law.”

The case was investigated by the Internal Revenue Service. This is a clear example of the consequences of payroll tax evasion and the importance of paying taxes on time.

As the investigation showed, the couple’s actions were not only illegal but also hurtful to their employees and the community. The IRS will continue to crack down on businesses and individuals who fail to pay their fair share of taxes.

In a statement, the U.S. Attorney’s Office said, “We will continue to work tirelessly to ensure that those who break the law are held accountable.”