United Group Insurance

Des Moines business owner sentenced for Failure to Pay Employment Taxes and File Federal Tax Return

News

December 1st, 2023 by Ric Hanson

DES MOINES, Iowa – A Bondurant man was sentenced today (Friday), to 15 months in federal prison for failure to pay over employee trust fund taxes and failure to file a federal tax return.

According to court documents, from 2015 to 2020, 50-year-old Thomas James Morford, who operated a local concrete business, failed to pay $355,049 in employment taxes to the Internal Revenue Service (IRS). This included the failure to pay taxes that he had collected from employees through withholding, as well as matching employer contributions to Social Security and Medicare. Morford also failed to file federal tax returns for 2015, 2016, 2018, 2019 and 2020.

After completing his term of imprisonment, Morford will be required to serve three years of supervised release. There is no parole in the federal system. Morford was also ordered to pay $355,049.68 in restitution to the IRS.

“Withholding employment taxes from employee wages and willfully failing to remit them to the IRS is a serious offense,” said IRS Criminal Investigation (CI) Special Agent in Charge Thomas F. Murdock. “Not only does this harm employees, but it also robs the Treasury of funds and that has the potential to harm all those who rely on support from government programs.”

United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. This case was investigated by the Internal Revenue Service Criminal Investigation Division.