New Jersey Business Owner Failed to Pay $10 Million in Payroll Taxes

By Jeff Goldman.
nj.com (via (TNS).

A New Jersey business owner faces a federal prison sentence after failing to pay more than $10 million in payroll taxes.

Josef Neuman, 37, of Lakewood, pleaded guilty to willful failure to pay over payroll taxes, the U.S. Attorney’s Office for New Jersey said in a statement Wednesday. Neuman’s company provided administrative services to operators of nursing homes and other health care facilities, federal prosecutors said.

“Neuman knew that payroll taxes were due and owed to the IRS at this time, but continued to pay other business expenses and employee salaries, instead of the unpaid taxes, while tax liabilities continued to accrue,” the U.S. Attorney’s Office said.

In all, he defrauded the government of $10,884,373 in payroll taxes in 2017 and 2018. His company was not named in court papers. Neuman faces up to five years in federal prison and a fine of $10,000.

He is scheduled to be sentenced Dec. 13.

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