Cedar Rapids Man Pleads Guilty To Failing To Forward Taxes He Withheld From His Employees' Paychecks
A man who withheld federal taxes from his employees’ paychecks but did not forward the money to the Internal Revenue Service (“IRS”) pled guilty today in federal court in Cedar Rapids.
Eric Holub, 45, from Cedar Rapids, Iowa, was convicted of one count of failing to pay over to the IRS money he had withheld from his employees’ paychecks for federal employment taxes.
In a plea agreement, Holub admitted he was an owner of Premier Security, a private security business previously located in Cedar Rapids, and had served as the president and treasurer of the business from 2003 through 2011. Holub admitted that from January 2008 through December 2009, he was responsible for withholding income taxes and Federal Insurance Contributions Act (“FICA”) taxes from the pay of Premier Security employees and was responsible for forwarding those withholdings to the IRS. Holub admitted that, for six calendar quarters in 2008 and 2009, he failed to forward the money he withheld from his employees’ pay to the IRS, even though he knew he was required to do so. In the plea agreement, Holub further admitted he also failed to pay to the IRS other taxes owed by Premier Security from 2008 through 2011. In total, Holub admitted to failing to send to the IRS approximately $400,000 in taxes owed by Premier Security.
“IRS Criminal Investigation realizes the detrimental consequences of employment tax evasion. It results in the loss of tax revenue to the United States government and the possible loss of future social security or Medicare benefits for the employees,” said Sybil Smith, Special Agent in Charge of IRS Criminal Investigation.
Sentencing before United States District Court Chief Judge Linda R. Reade will be set after a presentence report is prepared. Holub remains free on conditions previously set by the District Court pending sentencing. Holub faces a possible maximum sentence of five years’ imprisonment, a $250,000 fine, a $100 special assessment, and one year of supervised release following any imprisonment.
-more- The case is being prosecuted by Assistant United States Attorney Anthony Morfitt and was investigated by Internal Revenue Service Criminal Investigation.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 13-32.