A Tulsa-based computer software company owner pleaded guilty to federal payroll tax fraud on Monday, the Justice Department announced.
From January 2014 through June 2016, Earenest J. Grayson Jr., owner of Zealcon Corp., intentionally caused the United States a tax loss of more than $1 million by intentionally not paying income and Social Security taxes withheld from employees’ wages and from the company to the Internal Revenue Service, the department said in a news release.
Principal Deputy Assistant Attorney General Richard Zuckerman of the Justice Department’s Tax Division said that “failing to account for or pay payroll taxes is not acceptable.”
“The Department of Justice, working with the IRS, will ensure that our tax system is fairly enforced throughout the country,” he said in the release.
U.S. Attorney Trent Shores said plenty of "honest small businesses" pay their share of taxes and called Grayson a "dishonest employer who cheated both his employees and the United States government."
"Some of those taxes were payments for the Social Security and Medicare coverage of the employees,” Shores said in a prepared statement. “I hope Mr. Grayson’s potential prison sentence will dissuade other business owners from trying to cheat the system."
Grayson’s sentencing is scheduled for Oct. 3 in Tulsa federal court.
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