A man from Lycoming County has been sentenced on tax-related charges, as announced by the United States Attorney’s Office for the Middle District of Pennsylvania. U.S. District Court Chief Judge Matthew W. Brann sentenced James Michael Barr, 69, from Cogan Station, Pennsylvania, to a time-served sentence followed by two years of probation, which includes ten months of home confinement. The sentencing was due to Barr's failure to pay employment taxes owed by his construction company.
Acting United States Attorney John C. Gurganus stated that Barr pleaded guilty in July 2024 to not accounting for and paying over employment taxes owed by Barr Construction from 2017 through 2020. During this period, Barr paid his employees in cash alongside their regular paychecks but did not withhold federal taxes from these cash payments or remit the owed taxes to the Internal Revenue Service.
"Employers have a responsibility to their employees to withhold the proper amount of taxes and pay those taxes over to the IRS," said Amy MacNeely, Acting Special Agent in Charge at IRS-Criminal Investigation, Philadelphia Field Office.
In addition to probation and home confinement, Barr was fined $5,000 and is required to make restitution to the IRS amounting to $337,000 plus civil penalties.
The case was investigated by the Internal Revenue Service Criminal Investigation and prosecuted by Assistant United States Attorney Geoffrey W. MacArthur.