A Rhode Island businesswoman, Gail M. Hynson, has been sentenced to two years of probation for failing to remit employee payroll taxes to the IRS. Acting United States Attorney Sara Miron Bloom announced that Hynson will serve the first three months in home detention.
Hynson, aged 59 and president of Hynson Electrical Services, Inc., admitted guilt in October 2024 to ten counts of failure to account for and pay over payroll taxes and three counts of filing a false tax return. U.S. District Court Chief Judge John J. McConnell, Jr., also mandated her to complete 100 hours of community service.
According to court documents, between 2016 and 2024, Hynson withheld federal income taxes, Medicare, and Social Security taxes from her employees' paychecks but did not forward these funds to the IRS. Instead, she transferred much of this money into her personal bank accounts for expenses such as her mortgage, car payments, and her daughter's student loans.
Court records further reveal that both Gail Hynson and her husband submitted false personal tax returns that did not accurately reflect their income. The unreported income included company tax withholdings intended for the IRS but used instead for personal expenses by Hynson.
During this period from 2016 through 2024, Hynson failed to remit approximately $1.22 million dollars in taxes owed to the IRS.
Assistant United States Attorneys Ly T. Chin and Milind M. Shah prosecuted the case following an investigation by the Internal Revenue Service Criminal Investigation.