WILMINGTON, N.C. — A North Carolina businessman has pleaded guilty to not paying more than $2 million in employment taxes and not filing employment tax returns, according to the U.S. Attorney’s Office.
George William Taylor Jr., of Wilmington, was owner and operator of National Speed, a high-performance automotive services business. As the chairman and president of National Speed, he was responsible for withholding Social Security, Medicare and income taxes from employees’ wages and paying those to the IRS. From 2014 to 2021, Taylor withheld the taxes but did not pay them to the IRS, file the necessary employment tax returns, or pay the employer’s share of those taxes to the IRS.
The total loss to the IRS was $2,272,072, the press release from the U.S. Attorney’s Office stated.
The guilty plea came Thursday in federal court for the Eastern District of North Carolina.
Taylor is scheduled to be sentenced on Nov. 19 and faces a maximum penalty of five years in prison. He also faces a period of supervised release, restitution, and monetary penalties. A federal district court judge will determine the sentence.
“The vast majority of working Americans pay their fair share in taxes, supporting our nation’s infrastructure, education, and national security. But for years this businessman took millions from employees’ paychecks, supposedly for taxes, and spent it to pad his business and personal expenses,” said U.S. Attorney Michael Easley. “Tax cheating like this undermines faith in our system and can’t be tolerated in honest business. Hardworking taxpayers won’t stand for it, and neither will the IRS.”
“Employment tax evasion results in the loss of tax revenue to the United States government and can cause financial hardship to employees in the form of lost or delayed social security or Medicare benefits,” said Special Agent in Charge Donald “Trey” Eakins, Charlotte Field Office, Internal Revenue Service Criminal Investigation. “Failure to pay over withheld taxes is a serious offense. Business owners have a responsibility to withhold income taxes for their employees and then remit those taxes to the IRS.”
