Former Roca couple sentenced for failing to pay $426,000 in taxes
LINCOLN, Neb. (KLKN) — A couple formerly from Roca were sentenced Tuesday for failure to pay over employment tax.
The U.S. Attorney’s Office said William H. White, 55, will serve one year in prison followed by three years of supervised release, while Sarah A. White, 40, will serve three years of probation.
The two have already paid the $426,047.75 they owed.
The Whites owned two businesses, B&B Midwest Trucking and 419 LLC.
From 2015 to 2018, B&B and 419 withheld income, Social Security and Medicare taxes from employees but failed to account for those taxes on time and to pay them over to the IRS.
A total of $114,220.31 in employee payroll taxes was withheld for B&B, and $281,827.44 for 419.
William and Sarah White were aware of the amount owed and were able to pay. But they used the money to pay business creditors and personal expenses instead, according to the Attorney’s Office.
“Business owners have a significant duty to collect and turn over all IRS withholding taxes,” Thomas F. Murdock, an IRS law enforcement official, said in a press release. “Those who fail to do so gain an unfair competitive advantage. The failure to abide by IRS laws will not be tolerated, and those criminals will be prosecuted to the fullest extent of the law.”