Barry Lee White has been sentenced to federal prison for willful failure to pay more than $2.4 million in payroll taxes.
“Payroll taxes fund important social insurance programs, including Social Security and Medicare,” said U.S. Attorney Ryan K. Buchanan. “White refused to pay payroll taxes after withholding those funds from his employees’ paychecks for years – stealing from his employees and United States taxpayers. Employers who fail to comply with their legal obligations will be held accountable.”
“Employment tax evasion is stealing from the government and the American taxpayer,” said Demetrius Hardeman, Special Agent in Charge, IRS Criminal Investigation, Atlanta Field Office. “Business owners are entrusted to collect and turn over IRS withholding taxes; not doing so may affect employees’ future social security and Medicare benefits. Investigating employment tax fraud is very important to IRS Criminal Investigation. Our special agents will work hard to ensure those who engage in this criminal activity are held accountable.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: Between 2012 and 2019, Barry Lee White owned and operated, at different times, two construction maintenance and electrical companies: I-Barr Construction, Inc. and T-Line Construction, LLC. As an employer, White’s companies were required to withhold from employees’ gross pay Federal Insurance Contributions Act (FICA) taxes, which represent Social Security and Medicare taxes, and federal income taxes. Collectively, these withheld taxes are referred to as “payroll taxes.”
As the sole operator of the companies, White had the responsibility to collect, truthfully account for, and pay the IRS the payroll taxes. From at least 2015 to 2018, White withheld over $1.8 million in payroll taxes from his employees but failed to pay the taxes to the IRS. In addition, White was required to pay a certain portion of Social Security and federal unemployment tax for the companies; however, he failed to pay more than $600,000 for the employer’s portion of the payroll taxes.
Barry Lee White, 59, of Carrollton, Georgia was sentenced to one year and ten months in prison followed by three years of supervised release. He was also ordered to pay restitution amounting to $2,499,473.07. White was convicted of these charges on May 7th after pleading guilty.
This case was investigated by the Internal Revenue Service Criminal Investigation.
Assistant U.S. Attorneys Angela Adams and Erin N. Spritzer prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016.
The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.