HARRISBURG, DAUPHIN COUNTY (WBRE/WYOU) — A Harrisburg woman pleaded guilty Tuesday for failing to collect and pay over $500,000 in employment taxes to the Internal Revenue Service (IRS).
According to the U.S. Attorney’s Office for the Middle District of Pennsylvania, on Tuesday, Dary T. Son, 36, of Harrisburg, pleaded guilty before U.S. District Court Judge Rambo for failing to collect and pay employment taxes to the IRS.
U.S. Attorney Gerard M. Karam says, from June 2015 through August 2019, Son, who owns a Pennsylvania-based temporary staffing company, DS Agency, failed to collect and pay, on behalf of her employees, approximately $591,822.99 in taxes owed to the IRS.
She also failed to pay the IRS an equal amount that she owed as their employer, officials say.
As the press release reads, from 2015 to 2019, DS Agency received and cashed checks from Son Associates for providing temporary workers in the amount of over $7.7 million. Instead of depositing the payments in a bank account, Son cashed the checks at a check-cashing business in Harrisburg, from 2015 to mid-2017.
Officials say, beginning in 2018, Son started making trips to a check cashing business in Philadelphia where she cashed around $3 million in checks in less than a year.
Son never withheld any federal, Social Security, Medicare, or state taxes from her
employees’ income. She did not pay her employer’s portion of the taxes, so she is now responsible for $1,183,646.25 in unpaid federal taxes, which she has agreed to pay in
restitution as part of her plea agreement.
The maximum penalty for this offense under federal law is five years in prison, a
term of supervised release, and a fine of up to $250,000.