A Massachusetts business owner, Kenneth Marston of Kingston, has admitted guilt to charges of failing to collect and pay payroll taxes. The charges relate to his management of Bowmar Steel Industries Inc., a steel fabrication company, and Teleconstructors Inc., which specializes in cellular phone tower installations.
Marston was tasked with withholding Social Security, Medicare, and income taxes from employee wages and remitting these amounts to the IRS. Court documents reveal that between March 2015 and December 2018, Marston did not fulfill these obligations for approximately $3.8 million in wages through his companies.
The resulting tax loss to the IRS is estimated between $550,000 and $1.5 million. Marston's sentencing is set for January 3, where he could face up to five years in prison alongside supervised release, restitution, and fines. The final sentence will be determined by a federal district court judge based on U.S. Sentencing Guidelines.
The announcement was made by Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Joshua S. Levy for the District of Massachusetts.
The case is being investigated by IRS Criminal Investigation, with prosecution led by Trial Attorney Mark McDonald of the Tax Division and Assistant U.S. Attorney James R. Drabick for the District of Massachusetts.