Taney County Business Owner Pleads Guilty to Failure to Pay $490,000 in Payroll Taxes

SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Taney County, Mo., business owner pleaded guilty in federal court today to failing to pay over more than $490,000 in taxes he withheld from his employees’ paychecks.

Carl Justin Gage, 41, of Ridgedale, Mo., waived his right to a grand jury and pleaded guilty before U.S. Magistrate Judge David P. Rush to a federal information that charges him with the willful failure to pay over taxes.

Gage owned and operated multiple businesses in Taney County, including Eagle Construction and Excavating, LLC, Gage Excavating, LLC, Gage Family Entertainment, LLC, and Hollister Pizza Company, LLC. The total tax harm (including the employer’s matching portions) due from the four corporations is $490,227. Gage admitted he was aware of these requirements and willfully did not pay over the tax even though he withheld the taxes from the employees’ paychecks.

According to today’s plea agreement, Gage hired a bookkeeper to manage the finances of his businesses, including the payroll and preparation of payroll tax returns. The bookkeeper notified Gage of the payroll tax due and owning, but Gage willfully made the decision each quarter to not pay over the taxes withheld from his employees’ paychecks to the Internal Revenue Service.

Beginning in the fourth quarter of 2010 through the first quarter of 2012, Gage willfully failed to pay over $62,830 in taxes that had been withheld from his employees’ paychecks for Gage Family Entertainment.

Beginning in the third quarter of 2008 through the second quarter of 2010, Gage willfully failed to pay over $176,573 in taxes that had been withheld from his employees’ paychecks for Gage Excavating. On June 18, 2010, Gage began operating his excavating business under the new name, Eagle Construction and Excavating, LLC.  Gage continued his scheme to willfully fail to pay over $48,821 in taxes that had been withheld from his employees’ paychecks from the third quarter of 2010 through the fourth quarter of 2011.

Beginning in the fourth quarter of 2008 through the third quarter of 2010, Gage willfully failed to pay over $25,113 in taxes that had been withheld from his employees’ paychecks for Hollister Pizza Company.

Under federal statutes, Gage is subject to a sentence of up to five years in federal prison without parole, plus a fine up to $250,000 and an order of restitution. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.

This case is being prosecuted by Assistant U.S. Attorney Patrick Carney. It was investigated by the FDIC - Office of Inspector General and IRS-Criminal Investigation.