U.S. Attorney Nicholas J. Ganjei said that on April 30, a business owner in South Texas admitted that he had not paid employment taxes at his local business.
An indictment filed with the U.S. District Court for the Southern District of Texas on March 27, 2024, says that Timothy Gaines Pollard, of McCoy, Texas, owned and ran Tim Pollard Construction, a business in Bishop and Kingsville that did home remodelling and fence construction.
Pollard admitted that from 2018 to 2022, he didn’t receive, withhold, or pay employment taxes from his workers’ pay cheques. These taxes included federal income, Social Security, and Medicare taxes.
According to a statement of facts that was sent to the court, he withheld money from his workers during that time but did not pay it to the US as required by law. Instead, he used the money for personal things.
He didn’t pay the IRS more than $36,700 in payroll taxes that he had collected from his workers in the fourth quarter of 2019.
Court records show that in November 2018, an IRS worker talked to Pollard and told him he had to pay payroll taxes.
This talk, Pollard admitted that he was in charge of paying taxes to the IRS and promised to keep up with his payments.
Between 2018 and 2021, the company took out the right amount of payroll taxes from workers’ pay cheques. However, it didn’t pay the full amount of payroll taxes to the IRS when it was due every three months.
The papers showed that after January 2019, Pollard stopped sending the IRS quarterly payments of payroll taxes and stopped filing employment tax returns with the IRS.
For more than $421,000 in taxes, Pollard did not account for them, according to court papers.
On July 30, U.S. District Judge David S. Morales will hand down the sentence.
Pollard could go to jail for up to five years, pay a fine of up to $250,000, or both. After prison, he could have up to three years of supervised release.
He was allowed to stay out on bond until that meeting.