Construction firm CFO sentenced to two years in prison for employment tax crime

 

Date: October 26, 2023

Contact: newsroom@ci.irs.gov

A Louisiana man was sentenced today to 24 months in prison for willfully failing to report and pay over the IRS employment taxes withheld from employees' paychecks.

According to court documents and statements made in court, Julian Russ of Houma, was the Chief Financial Officer (CFO) of Community Construction Company LLC, a pipeline-maintenance and construction company based in Hazelhurst, Mississippi. As CFO, Russ was responsible for collecting, accounting for and paying over the company's employment taxes. From at least 2012 to 2018, Russ did not file the company's quarterly employment tax returns or pay the IRS the taxes withheld from employees' wages, despite knowing of his legal obligation to do so. In total, Russ caused a tax loss to the IRS of more than $6 million.

In addition to the term of imprisonment, U.S. District Court Senior Judge David Bramlette III ordered Russ to serve three years of supervised release and to pay $2,714,280.71 in restitution to the United States.

Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department's Tax Division and U.S. Attorney Todd Gee for the Southern District of Mississippi made the announcement.

IRS-Criminal Investigation investigated the case.

Trial Attorney Curtis J. Weidler of the Tax Division and Assistant U.S. Attorney Charles W. Kirkham for the Southern District of Mississippi prosecuted the case.