Ohio Woman Sentenced to 18 Months in Prison for Failing to Pay Over $494,000 in Employment Taxes

Brenna Butdorf, 51, of Wooster, in Wayne County, Ohio, has been sentenced in federal court. The U.S. Attorney's Office for the Northern District of Ohio announced that Butdorf was sentenced to 18 months in prison, followed by three years of supervised release, after pleading guilty to failing to truthfully account for and pay over trust fund taxes. She was also ordered to pay a $55,000 fine, $198,448.75 in restitution to the IRS, and an additional $147,992.50 to another victim as a condition of her supervised release.
According to court documents, Butdorf managed the finances of an electrical contracting company that her husband owned and that was based out of their home. Federal law requires such companies to withhold Social Security, Medicare and federal income taxes from employees' paychecks and then remit them to the United States.
In her role as accountant and office manager for her husband's business, Butdorf withheld these taxes from the company's employees. Instead of remitting the funds to the IRS, she issued payments to herself and her husband, funded by the unremitted employment tax withholdings. She then spent the proceeds on herself and her family, including purchasing a condominium in Florida and paying dues for a private camp, a shooting club and vacations.
In total, investigators discovered that from 2015 to 2021, Butdorf failed to pay more than $494,000 in employment taxes to the government.
The investigation was conducted by the IRS Criminal Investigation Division's Cleveland office. Assistant U.S. Attorney Megan R. Miller led the prosecution.
(Source: U.S. Department of Justice)
Source: U.S. Department of Justice
Published by GSM · USA (original Chinese edition)
Photo: 图:美国司法部总部大楼(GSM联邦固定图库)。 / Photo: U.S. Department of Justice headquarters (GSM federal asset library).

