Source: United States Attorneys General
An Oregon business owner pleaded guilty yesterday to not paying over employment taxes to the IRS.
According to court documents and statements made in court, Joyce Leard owned and operated Mr. Tree Inc., a Happy Valley-based company that provided tree removal and landscaping services to customers. Mr. Tree advertised itself as being in business for thirty years, and the company employed approximately 50 to 75 employees each year. From 2017 through 2024, Leard also owned and operated Wall 2 Wall Hardwood Floors Inc, another Happy Valley-based company.
Leard was responsible for withholding Social Security, Medicare and federal income taxes from the wages of her employees and then paying those funds over to the IRS each quarter. The timely payment of these taxes is critical to the functioning of the U.S. government, because, for example, they are the primary source of funding for Social Security and Medicare. The federal income taxes that are withheld from employees’ wages also account for a significant portion of all federal income taxes collected each year.
From the fourth quarter of 2018 through the fourth quarter of 2020, Leard collected and withheld taxes from her employees’ wages but did not pay the funds over to the IRS or file quarterly payroll tax returns as required by law. Instead of paying over these payroll taxes, Leard used funds in her business bank account to purchase approximately $3.5 million of real estate, which was titled in her name.
In total, Leard caused a tax loss to the United States of more than $1.5 million.
Leard is scheduled to be sentenced on Oct. 6. She faces a maximum penalty of five years in prison as well as a period of supervised release, restitution, and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Karen E. Kelly of the Justice Department’s Tax Division made the announcement.
IRS Criminal Investigation is investigating the case.
Trial Attorneys J. Parker Gochenour and Megan E. Wessel of the Tax Division are prosecuting the case.