A former trucking company owner has been sentenced to federal prison for failing to forward taxes withheld from employee paychecks to the Internal Revenue Service (IRS) for years.
On January 20, 2022, Jesup, Iowa, resident Mark Warm, 57, was sentenced to 21 months in federal prison in a United States District Court in Cedar Rapids. He was also ordered to serve three years of probation and pay $1,406,561.66 in restitution to the IRS.
Warm pleaded guilty on September 2, 2021 to a single count of willful failure to pay employment taxes to the IRS.
Warm is the former owner of Warm Trucking, Incorporated.
Authorities say that during his plea deal, Warm admitted that for seven years he failed to pass income and Federal Insurance Contributions Act (“FICA”) taxes on the pay of Warm employees. Trucking to the IRS, even though he knew he was required to do so.
Warm also admitted to failing to pay other taxes owed by his company to the IRS.
In total, Warm allegedly failed to pay the IRS more than $1.4 million in taxes over a seven-year period.
“Sir. Warm’s refusal to pay payroll taxes for seven years was an attempt to dodge his obligations to his employees and to the United States,” said U.S. Attorney Sean Berry. employers like Mr. Warm to pay what they owe in employment taxes.This sentence shows that failure to do so willfully is a crime and there will be consequences.
“Today’s sentencing sends a message that paying personal and business taxes is an obligation you will be held to. When Mr. Warm made the decision to evade paying his labor taxes, he made a conscious decision to deceive his employees and all law-abiding taxpayers,” said Tyler Hatcher, Special Agent for Criminal Investigations from the IRS, from St. Louis Field. Office. “As the 2022 tax season begins, the IRS-CI wants to make it clear that, together with the Department of Justice, we will investigate and hold accountable those who cheat our tax system and cause harm to others.”
Warm has been released on bail and is expected to report to the Bureau of Prisons at an as yet unscheduled date.