A Connecticut business owner was sentenced to 19 months in prison for failing to pay more than $1 million in business payroll taxes, according to federal authorities.
Michelle Ann Gilson, 38, of Guilford, also was sentenced by U.S. District Judge Vernon D. Oliver in Hartford to three years of supervised release, according to federal authorities.
Citing court documents and statements made in court, authorities said Gilson co-owned and co-operated B&M Package Solutions, Inc. and formerly owned and operated Epic Empirez, Inc., both Guilford-based package delivery companies.
“As co-owner, Gilson was responsible for company books, payroll, and invoices, and for collecting and paying over certain federal taxes from her employees, namely federal income taxes and Federal Insurance Contribution Act…taxes, which include Medicare and Social Security taxes,” federal authorities said in a statement. “She was also responsible for ensuring that B&M Package Solutions and Epic Empirez, as employers, paid their own share of FICA taxes.”
However, an investigation found that, “for multiple quarters during the 2017 through 2022 tax years, Gilson failed to report employees’ federal income and FICA taxes, and failed to pay over withheld amounts and the employers’ share of FICA taxes,” federal authorities said in the statement.
In that period, Gilson paid more than $600,000 in mortgage payments and property improvements to her Guilford home, and made approximately $140,000 in payments to casino resorts, federal authorities said in the statement.
Oliver ordered Gilson to pay the IRS restitution of $1,407,831.16.
Authorities also said Gilson in 2020 applied for a government loan through the Paycheck Protection Program, authorized by as part of the March 2020 Coronavirus Aid, Relief, and Economic Security Act. As part of the application, Gilson attested that B&M Package Solutions paid payroll taxes for its employees. “In July 2020, Gilson received $250,000 in PPP funds,” and that loan was subsequently forgiven, federal authorities said.
Gilson pleaded guilty in July to willful failure to pay over withholding taxes. She is free on bond and required to report to prison on Dec. 4, federal authorities said.
The case was investigated by Internal Revenue Service – Criminal Investigation Division.
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