Owners of mental health counseling services company plead guilty to employment tax crime

 

Date: August 18, 2023

Contact: newsroom@ci.irs.gov

An Oklahoma man and a Virginia man pleaded guilty, in separate cases, to willfully failing to pay over employment taxes.

According to court documents and statements made in court, Stephen Christopher Parker of Oologah, Oklahoma, and Michael Baines of Portsmouth, Virginia, were co-owners of a mental health counseling services company, Family Youth Intervention Services Inc., located in Tulsa, Oklahoma. In that role, Parker and Baines were responsible for withholding, accounting for and paying over the income and Social Security and Medicare taxes withheld from the wages paid to the company's employees. For the second quarter of 2016 they did not file the required quarterly employment tax return or pay over the entirety of those taxes. Parker and Baines further admitted that from January 2014 through December 2017, they did not pay over a total of approximately $1,265,259 in withholdings to the IRS.

Parker and Baines each face a maximum sentence of five years in prison, followed by supervised release, restitution and monetary penalties. U.S. Chief District Court Judge John F. Heill III, will determine any sentence after considering U.S. sentencing guidelines and other statutory factors.

Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department's Tax Division and U.S. Attorney Clinton J. Johnson for the Northern District of Oklahoma made the announcement.

IRS-Criminal Investigation is investigating the case.

Assistant Chief Andrew Kameros of the Tax Division and Assistant U.S. Attorney David Whipple for the Northern District of Oklahoma are prosecuting the case.