A Tyler-area landscaping business owner pleaded guilty in connection with withholding payroll taxes from his employees.
Miles Brosang, 46, of Whitehouse, pleaded guilty to federal violations on one criminal count of willful failure to collect or pay over tax Wednesday before U.S. Magistrate Judge K. Nicole Mitchell, according to a news release.
Based on information presented in court, he was the only director, shareholder and general manager of Brosang’s Landscaping Inc., and because of his position he was in control of approving all payments and controlling company bank accounts, according to the U.S. Attorney's Office.
Between July 1 and Sept. 30, 2015, Brosang’s Landscaping withheld payroll taxes from its employees’ paychecks, such as federal income taxes, and Medicare and social security taxes. Brosang knew the business was supposed to make deposits of payroll taxes to the Internal Revenue Service periodically, the release stated.
During those months in 2015, Brosang did not make the required payments to the IRS. The amount of taxes that should have been paid over from July to September is $49,704.47. The total of payroll taxes that should have been paid over is $229,552, according to the U.S. Attorney's Office.
“Business owners need to understand the importance of their obligations in the withholding of payroll taxes,” said United States Attorney Joseph D. Brown. “They hold those taxes in trust for the employee and the government and there are criminal penalties for those who divert those funds for other uses.”
Brosang faces up to five years in federal prison. A sentencing hearing will be scheduled after a presentence investigation by the the U.S. Probation Office. The IRS – Criminal Investigation is investigating the case and Assistant U.S. Attorney Alan R. Jackson prosecuted it.