A Florida man and woman have admitted to conspiring to defraud the United States by failing to pay employment taxes, according to a recent court hearing.
William Skaggs Jr., who owned Nastar Roofing in Fort Myers, and Billie Adkison, the business's primary office administrator responsible for payroll management, pleaded guilty to these charges. The allegations involve activities from 2013 to 2023 where employees of Nastar Roofing were paid over $21 million in cash without withholding necessary taxes like Social Security, Medicare, and federal income taxes.
The company's method involved using a payroll provider to issue minimal employee paychecks while not disclosing cash wages. This resulted in false employment tax returns being filed with the IRS as they did not account for the substantial cash payments. Skaggs and Adkison knowingly signed several inaccurate tax returns during this period.
Their actions led to a tax loss of nearly $2.5 million for the IRS. Both individuals are awaiting sentencing, which could result in up to five years in prison along with supervised release, restitution, and monetary penalties. Sentencing will be determined by a federal district court judge considering U.S. Sentencing Guidelines and other factors.
The announcement was made by Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Roger Handberg for the Middle District of Florida.
The case is under investigation by IRS Criminal Investigation with Trial Attorney Kevin Schneider of the Tax Division and Assistant U.S. Attorney Michael Leeman prosecuting.