Michigan Payroll Tax Service Owner Charged with Failing to Pay Payroll Taxes

On Behalf of | Aug 24, 2020 | White Collar Crimes

If you drive about 150 miles north of Ann Arbor, you will arrive in the small village of Farwell. A businessman in the town of about 850 residents was recently indicted by a federal grand jury in Detroit.

Dale Thrush has been charged with failing to pay his business’s payroll taxes to the IRS, as well failing to file his personal tax returns. He’s the owner-operator of a Mount Pleasant company that provides payroll tax services to area businesses. Among the services provided: withholding payroll taxes and then forwarding the funds to the IRS.

Thrush is accused of withholding payroll taxes for his own employees, but sending only a portion of the funds to the IRS. Federal prosecutors claim that he used nearly $400,000 of withheld funds to pay expenses for his other companies and for the costs of remodeling his wife’s business.

Prosecutors also say that he failed to file personal returns reporting his income from his businesses.

The Department of Justice says on its website that each of the 10 counts of failing to pay his business’s payroll taxes carries a maximum sentence of five years in a federal prison .Each of the four counts of failing to file his personal income tax returns carries a maximum sentence of a year in prison.

He also faces possible imposition of restitution and monetary penalties, if convicted.

It’s important to note as well what the DOJ says at the ends of its news releases: “An indictment merely alleges that crimes have been committed. The defendant is presumed innocent until proven guilty beyond a reasonable doubt.” That’s exactly right.

Thrush – and all other defendants – must be presumed innocent until the federal government can prove guilt. He and his criminal defense attorney will get their day in court to refute the charges.