South Texas company owner pleads guilty to withholding payroll taxes for personal use
A South Texas business owner admitted on April 30 to failing to pay employment taxes at his local business, U.S. Attorney Nicholas J. Ganjei announced.
Timothy Gaines Pollard, of McCoy, Texas, owned and operated Tim Pollard Construction, a residential remodeling and fence installation business in Bishop and Kingsville, according to an indictment filed with the U.S. District Court for the Southern District of Texas on March 27, 2024.
Pollard pleaded guilty to failing to collect, withhold or pay employment taxes from his employees' paychecks from 2018 to 2022, including federal income, Social Security and Medicare taxes.
A stipulation of fact filed with the court said that he withheld money from his employees during that period but failed to pay it to the United States, as the law requires, and spent the funds on personal expenses instead.
Specifically, during the fourth quarter of 2019, he did not pay to the IRS payroll more than $36,700 in taxes that he had collected from employees.
An IRS agent spoke with Pollard in November 2018 and put him on a notice of obligation to pay payroll taxes, court documents showed.
During that conversation, Pollard acknowledged that he was responsible for paying taxes to the IRS and agreed to stay current with his payments.
While the company withheld the appropriate amount of payroll taxes from employees' paychecks from 2018 through 2021, it failed to fully pay out the withheld payroll taxes to the IRS, which were due every quarter during that period.
Beginning in January 2019, Pollard made no further quarterly payments of payroll taxes to the IRS and did not file employment tax returns with the IRS, the documents showed.
In total, Pollard failed to account for more than $421,000 in total taxes, according to the court records.
U.S. District Judge David S. Morales will impose sentencing on July 30.
Pollard faces up to five years in prison, a $250,000 maximum fine or both penalties, and could receive up to three years of supervised release after imprisonment.
He was permitted to remain on bond pending that hearing.
More: Texas court vacates Corpus Christi man's 2004 murder conviction, citing false evidence
More: In Texas, private firms cash in on property tax late fees, piling debt onto homeowners
This article originally appeared on Corpus Christi Caller Times: Federal court convicts South Texas man who didn't pay employment taxes
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
35 minutes ago
- Yahoo
3 Surprising Financial Benefits of Unretiring (It's More Than Just a Salary)
Retirement isn't always the final chapter — sometimes it's just a pause. One survey conducted by T. Rowe Price, found that millions of retirees have returned to work in search of financial and emotional benefits. Whether you miss the structure, the sense of purpose, or want to boost your bank account, more people are choosing to 'unretire' and reenter the workforce. And it turns out, the financial upsides go far beyond a steady paycheck. Explore More: Read Next: 'I've seen so many compelling benefits from unretiring in my work with clients — and experienced them myself,' said Andrew Lokenauth, money expert and owner of BeFluentInFinance. 'The money aspect goes way deeper than just getting a paycheck.' Here are some other surprising benefits of unretiring that might make you rethink staying on the sidelines. Plus discover several signs you should unretire this year. Chris Heerlein, CEO of REAP Financial, said working part-time or consulting can often provide access to employer-sponsored health insurance, reducing the need to purchase expensive private plans or rely on Medicare. Additionally, staying physically and mentally active is linked to lower healthcare expenses, as retirees who remain engaged in work tend to experience fewer health problems, keeping their overall costs lower. 'Let me tell you about my client Sarah. She went back to consulting work after two years of retirement and saw her healthcare costs drop by [over] $400 per month,' said Lokenauth. Just by staying mentally engaged and physically active at work, he said she needed fewer medications and doctor visits. And she's not alone. He's consistently noticed that working retirees tend to have lower medical expenses. Check Out: The tax benefits are pretty significant, too. When Lokenauth unretired, he was able to keep contributing to his Roth IRA since he had earned income again. 'Plus, delaying Social Security meant my monthly benefits grew about 8% each year,' he added. The compound effect really adds up. Working just a few extra years can open up more tax-efficient strategies that aren't available once you're fully retired — and those perks can stretch your savings a lot further down the line. By earning income, retirees can reduce the amount they need to withdraw from their savings, allowing those funds to last longer. This extended longevity of retirement assets, according to Heerlein, can make a huge difference over time, especially as longer lifespans and unexpected medical expenses increase the financial burden on retirees. 'The ability to contribute even a small amount to savings while still working part-time can help balance finances and provide peace of mind,' he said. Beyond the financial benefits, Heerlein noted that staying engaged in work can have emotional and social advantages that reduce potential future costs. Remaining active in a work environment helps reduce isolation and contributes to a better overall mental health, which can lead to fewer medical issues and reduced spending on healthcare. 'Staying engaged in work is not only financially beneficial but also supports a healthier, more fulfilling retirement,' Heerlein added. More From GOBankingRates Mark Cuban Warns of 'Red Rural Recession' -- 4 States That Could Get Hit Hard 6 Hybrid Vehicles To Stay Away From in Retirement Here's the Minimum Salary Required To Be Considered Upper Class in 2025 This article originally appeared on 3 Surprising Financial Benefits of Unretiring (It's More Than Just a Salary) Fehler beim Abrufen der Daten Melden Sie sich an, um Ihr Portfolio aufzurufen. Fehler beim Abrufen der Daten Fehler beim Abrufen der Daten Fehler beim Abrufen der Daten Fehler beim Abrufen der Daten
Yahoo
2 hours ago
- Yahoo
She stopped to help at a car crash and ended up cuffed. Now her lawsuit will head to trial
PROVIDENCE – A Newport woman's allegations that South Kingstown police officers violated her rights by assaulting and arresting her after she stopped to help two young men involved in a car crash in February 2023 can head to trial. U.S. District Court Judge Mary S. McElroy ruled June 9 that the civil rights lawsuit brought by Claire and James Hall can proceed to trial. 'Taking the record in the light most favorable to Mrs. Hall, a reasonable jury could conclude that she was ordered to move and subsequently arrested and leg-swept without a legal basis while trying to fulfill a duty that she thought was required under Rhode Island's Good Samaritan laws,' McElroy said in the 32-page ruling. Chief Matthew Moynihan and Officers Matthew White and Anthony Souza are named as defendants. Moynihan declined to comment because the matter is in litigation. The Halls' lawyer, Todd D. White, said "my clients are pleased to be going forward with their case." According to the ruling, the case began with a car crash on Feb. 9, 2023 on Route 1 in South Kingstown, when Claire Hall pulled over to check on the two young men involved. One of the young men, Van Limoges, was 'frantically walking' around and 'shaking,' with 'blood on his leg,' the ruling said. Hall lent Limoges her phone so that he could call his father, Jim, who asked Limoges if there was an adult on the scene, and Limoges handed the phone back to Hall. The father wanted to know where to meet his son: at the scene of the accident or at the hospital. Souza and White arrived as Hall continued to speak with the man's father. The officers directed her to move her car off the highway. Hall said she was about to leave and tried to hand the phone to White. White responded by stating: 'I'm working. Can you please go sit in your car? You have nothing to do with this,' according to the ruling. Hall said that Limoges was a minor, that she was a lawyer, and that White 'needed to tell her' where Van's father should meet them. White retorted, 'I don't need to tell you anything. I'm going to arrest you in a second if you don't get in your car. Do you understand me?' 'Oh, you're kidding me,' Hall said. White pointed to Hall's car and raised his voice, saying, 'You are impeding an investigation right now and you are really bothering me. Go sit in your car.' Hall raised her voice to match his and asked, 'What should I tell his father? What should I tell his father?' White responded, 'I will talk to him in a minute,' and then screamed, 'GET IN YOUR CAR, NOW!' Hall tried again to hand the phone to him. The officers grabbed Hall by the arms as she flailed and told them to stop. As she screamed, the officers leg-swept her, pushed her into the ground, and put her in handcuffs. She asked the young men to record the interactions. 'Why am I under arrest?' she asked. 'Because you weren't listening to anything we were saying,' White said. Hall continued to yell, and Souza told her to 'take a breather.' She told him to take one. White told dispatch that they had a woman in custody for disorderly and resisting. Hall said, 'No! I cannot even believe this. This is so ridiculous. I just wanted to know I could tell his father I was going to the hospital. I'm not even involved in this. I can't believe this.' White responded, 'This was our point the whole time.' Hall shouted, 'I'm a good Samaritan who stopped to help a kid and this is what happens.' The officers picked her up as she yelled, and walked her to the police SUV over her protests. Hall was charged with obstruction, disorderly conduct and resisting arrest – charges that were dismissed via not guilty filings five months later at the state's recommendation. The Halls sued the Police Department and the officers in 2023 in U.S. District Court alleging assault, battery and police brutality. In addition, the Halls sued Moynihan for damages based on his alleged failure to properly supervise White and Souza. The South Kingstown police asked the court to rule in their favor short of trial, arguing that probable cause existed to arrest Hall and that they used only reasonable force during the arrest. They also asserted that qualified immunity insulates them from the lawsuit. The court rejected those arguments, ruling that the matters were best left to a jury to decide. 'Without probable cause, qualified immunity is inappropriate under these circumstances. But because the Court has held that the remaining questions of probable cause should be left to the jury, it will reserve the question of qualified immunity for after trial, too,' McElroy said. This article originally appeared on The Providence Journal: Lawsuit alleging brutality by South Kingstown police can head to trial
Yahoo
2 hours ago
- Yahoo
Why everyone from Musk to Wall Street is worried about U.S. debt payments
The Republicans' "big beautiful" budget package is uniting everyone from Elon Musk to Wall Street over an issue that experts say could pose a threat to the nation's long-term fiscal stability: The rising cost of servicing the U.S. government's growing mountain of debt. The U.S. spent $1.1 trillion in interest on its debt in 2024 — almost double the amount it was paying five years ago, according to Federal Reserve Bank of St. Louis data. The nation now spends more on interest payments than it does on defense, data from the Stockholm International Peace Research Institute shows. Those costs could rise even more under the Republican tax and spending bill now being considered in the Senate, according to a June 5 analysis by the Congressional Budget Office. The version of the tax bill passed by the House last month is projected to increase the federal deficit — the gap between what the federal government spends each year and what it collects in revenue — by $2.4 trillion over the next decade, the nonpartisan agency found. That would require the government to raise additional debt, resulting in additional interest payments of about $550 billion over the next decade, the CBO forecasts. By 2035, interest on the nation's debt could reach $1.8 trillion, according to the Committee for a Responsible Federal Budget, a nonpartisan think tank focused on fiscal issues. "The interest costs now are bigger than defense spending, which is an extraordinary," Chris Edwards, an expert on federal tax issues at the Cato Institute, a libertarian-leaning think tank, told CBS MoneyWatch. "The budget threat here is that all of these increasing federal interest costs will crowd out all the other priorities in the federal budget that the policymakers want to spend on." In other words, the federal government could struggle to support vital programs like Social Security as a larger share of its budget is eaten up by interest payments on the nation's swelling debt. Federal interest payments as a share of the nation's gross domestic product stood at 3% last year, according to Federal Reserve Bank of St. Louis data. If current trends holds, that could rise to 4.1% of GDP by 2035, the nonpartisan Peter G. Peterson Foundation estimates. This embedded content is not available in your region. !function(){"use strict"; 0!== e= t in r,i=0;r=e[i];i++)if( d= Democrats have pointed to analyses showing the bill's tax cuts will benefit wealthier Americans far more than low- and middle-income workers while also adding to the national debt. "No single piece of legislation in my time here in Congress will do more to add to the national debt than this one," Rep. Brendan Boyle, a Democrat from Pennsylvania who voted against the legislation, said last month on the House floor. Many Republicans, however, point to the bill's proposed tax cuts as providing an avenue for economic growth. "We are going to celebrate a new golden age in America," House Speaker Mike Johnson said last month after the bill passed in the House. Concerns from Elon Musk, Wall Street The cost of paying for the nation's debt has drawn concern from many corners, including Tesla CEO Elon Musk, who earlier this month posted about it on social media as he voiced his objections to the GOP bill. "Congress is spending America into bankruptcy!" Musk posted on June 5, pointing to data showing that interest payments have risen from $416 billion in 2014 to more than $1 trillion in 2024. Moody's Ratings downgraded U.S. credit last month, citing among its reasons the mounting concerns about the nation's increasing debt load and interest payments. "Successive U.S. administrations and Congress have failed to agree on measures to reverse the trend of large annual fiscal deficits and growing interest costs," the credit rating agency said. "Over the next decade, we expect larger deficits as entitlement spending rises while government revenue remains broadly flat." Moody's added, "In turn, persistent, large fiscal deficits will drive the government's debt and interest burden higher." On June 7, the White House said in a memo that the GOP tax bill "significantly improves our nation's fiscal trajectory by including $1.7 trillion in mandatory savings," while President Trump's tax cuts will spur economic growth. Some economic forecasters project that Mr. Trump's tariffs will drag down U.S. growth. The nation's growth could slide to 1.6% in 2025 and 1.5% next year partly because of those import levies, a sharp reduction from the 2.8% growth recorded last year, the Organization for Economic Cooperation and Development said last week. How did interest payments get so big? In recent years, interest payments on the federal debt have ballooned for two main reasons. First, a series of COVID-related spending bills provided $4.6 trillion to individuals and businesses to help them keep afloat during the pandemic, with much of that financed through new debt. Second, the Federal Reserve started hiking interest rates in March of 2022 to tame high inflation. But that also meant the Treasury Department needed to pay higher rates to bondholders, adding to the cost of servicing the nation's burgeoning debt. In 2020, the U.S. had about $27 trillion in outstanding debt, according to Treasury data. By 2024, that had jumped 32% to $35.5 trillion. Over that time, the Fed's benchmark interest rate rose from close to zero percent to a high of more than 5% in 2024. One reason the Republican budget bill is forecast to increase the deficit — and add to the nation's interest costs — is that it would extend President Trump's 2017 tax cuts, as well as add other breaks, such as eliminating taxes on worker tips and overtime pay. Altogether, those tax cuts will cost $3.75 trillion, the CBO estimates. The revenue loss would be partially offset by nearly $1.3 trillion in reduced federal spending elsewhere, namely through Medicaid and food assistance. But that still leaves a significant funding gap. In the meantime, the U.S. could face a financial strain in servicing its debt, especially in the face of an economic slowdown, experts have warned. "The most dangerous scenario is that the giant size of our debt precipitates a U.S., and even global, economic recession and financial crisis," Cato's Edwards told CBS MoneyWatch. "We saw this 15 or so years ago in Greece and some other European countries. That sort of crisis could be coming to the United States at some point, but no financial expert knows exactly when that's going to be." An accused woman skips her pedicure, kills her ex-husband Watch California Gov. Gavin Newsom's full speech on federal response to Los Angeles protests LAPD chief speaks out about deployment of military forces to anti-ICE protests
