Grand Jury Returns Indictment Charging Kaysville Man with Attempt to Evade Payment of Taxes, Failure to Pay Taxes
SALT LAKE CITY – A federal grand jury returned a five-count indictment this week charging David Brian Bybee, age 55, of Kaysville, Utah, a Utah businessman and CPA, with two counts of tax evasion and three counts of failure to pay taxes. The indictment alleges Bybee has taken steps to evade payment of personal tax debt and payroll taxes for his employees through the use of nominees and misrepresentations to IRS revenue officers.
According to the indictment, Bybee managed and controlled several companies from his home in Kaysville or at other business addresses in Davis County. Bybee hired and managed employees for the Bybee companies. His duties included generating revenue, keeping books and records, paying expenses, making employee payroll, withholding and paying over taxes from employee payroll, and filing all required business returns. Bybee issued payroll checks from Bybee companies and withheld Medicare and Social Security (often referred to as Federal Insurance Contribution Act or “FICA” taxes) and federal income tax withholdings, collectively referred to as “payroll taxes.”
The first count of the indictment, attempt to evade and defeat payment of tax, alleges Bybee attempted to evade a large part of the income tax he owned to the federal government for calendar years 2000, 2001, 2002, 2005, 2006, 2007, 2008 and 2009, in an amount totaling about $153,569.41. The indictment alleges he took steps to conceal and attempt to conceal the nature, extent and location of his assets from the IRS to avoid paying the taxes.
A second count of attempt to evade and defeat payment of tax relates to efforts the indictment alleges Bybee took to evade paying payroll taxes to the federal government on behalf of the employees of three companies he controlled from about April 30, 2000, to about March 14, 2011. Bybee deducted and collected payroll taxes totaling at least $39,244.49 but did not report the payroll taxes with the exception of one employment tax payment of $899.32 in April 2012. Bybee was determined to be responsible for the payroll taxes and was assessed penalties totaling $47,919.06 for the unpaid taxes. According to the indictment, he has failed to make any payments.
The final three counts of the indictment allege Bybee failed to truthfully account for and pay over to the IRS all of the federal income taxes withheld and FICA taxes due to the United States on behalf of the Bybee companies and its employees for three calendar quarters, including approximate payroll taxes of $2,247.51 for the fourth quarter of 2010; $1,800 for the fourth quarter of 2011; and $1,830.66 for the fourth quarter of 2012.
A summons will be issued to Bybee to appear for an arraignment in federal court. The maximum potential penalty for each of the five counts in the indictment is five years, a fine of $250,000, and the costs of prosecution.
Indictments are not findings of guilt. Individuals charged in an indictment are presumed innocent unless or until proven guilty in court.
The case is being prosecuted by the U.S. Attorney’s Office in Salt Lake City and investigated by special agents of IRS-Criminal Investigation.