NJ Man Sentenced to 30 Months in Prison for Failing to Pay over $10 Million in Payroll Taxes

An Ocean County man was sentenced today to 30 months in prison for failing to pay over $10 million in payroll taxes stemming from his ownership of several businesses. Josef Neuman, 37, of Lakewood, New Jersey, previously pleaded guilty to an information charging him with willful failure to pay over payroll taxes for one of his businesses in 2018. According to documents filed in this case and statements made in court: Neuman was chief executive officer of a business in Lakewood. The company provided administrative services to operators of nursing homes and other healthcare facilities, including at least approximately 20 entities co-owned and operated by Neuman. As a person who controlled the companies’ financial affairs, Neuman had the responsibility to collect, truthfully account for, and pay over to the IRS the companies’ payroll taxes. During tax years 2017 and 2018, Neuman failed to pay over to the IRS over $10 million in payroll taxes owed by the companies. Neuman knew that payroll taxes were due and owing to the IRS at this time, but continued to pay other business expenses and employee salaries, instead of the unpaid taxes, while tax liabilities continued to accrue. In addition to the prison term, Neuman was sentenced to two years of supervised release and ordered to pay restitution of $11.2 million.

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