Clarence Man Sentenced To Over Two Years' Imprisonment For Failing To Forward Taxes He Withheld From His Employees' Paychecks
A former business owner who withheld federal taxes from his employees’ paychecks but did not forward the money withheld to the Internal Revenue Service (“IRS”), was sentenced on October 22, 2013, to more than two years in federal prison.
Eric Holub, 46, from Clarence, Iowa, received the prison term after a July 12, 2013, guilty plea to one count of failing to pay over to the IRS money he had withheld from his employees’ paychecks for required federal employment taxes.
In a plea agreement, Holub admitted that he was the 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. However, 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 failed to send the IRS approximately $460,000 in taxes owed by Premier Security.
Holub was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Holub was sentenced to 30 months’ imprisonment. A special assessment of $100 was imposed, and he was ordered to make $438,426.17 in restitution to the IRS. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
"IRS Criminal Investigation takes these violations of law very seriously," said Sybil Smith, Special Agent in Charge of IRS Criminal Investigation. "Business owners have a responsibility to withhold income taxes for their employees and then remit those taxes to the Internal Revenue Service."
Holub was released on conditions previously set and is to surrender to the United States Marshal on November 12, 2013.
The case was prosecuted by Assistant United States Attorney Anthony Morfitt and investigated by Internal Revenue Service Criminal Investigation.
Court file information is available at https://ecf.iand.uscourts.gov/. The case file number is 13-CR-00032.