HARTFORD, Conn. — A Guilford woman was sentenced in Hartford to 19 months in prison on Wednesday for failing to pay over $1 million in business payroll taxes, according to a release from the US Attorney for the District of Connecticut.
Michelle Ann Gilson, 38, was a business owner in Guilford. Her prison sentence will be followed by three years of supervised release.
Court documents and statements made in court note that Gilson co-owned and co-operated B&M Package Solutions, Inc. and also used to own and operate Epic Empirez, Inc., which were both package delivery companies based in Guilford.
Prosecutors said Gilson was responsible for company books, payroll, invoices, and for collecting and paying over certain federal taxes from her employers, primarily federal income taxes and Federal Insurance Contribution Act, or FICA, taxes, which include Medicare and Social Security taxes. Gilson was also responsible for making sure B&M Package Solutions and Epic Empirez paid their own share of FICA taxes as employers.
Investigators found that, for multiple quarters from the 2017 – 2022 tax years, Gilson didn’t report employees’ federal income and FICA taxes and failed to pay over withheld amounts and the employers’ share of FICA taxes.
However, prosecutors said Gilson spent more than $600,000 on mortgage payments and property improvements to her Guilford home during this period while making approximately $140,000 in payments to casino resorts.
On Wednesday, a judge ordered Gilson to pay the Internal Revenue Service restitution of $1,407,831.
According to prosecutors, in 2020, Gilson applied for a government loan through the Paycheck Protection Program, which was authorized by Congress as part of the CARES Act to offer emergency financial aid to Americans suffering economically due to the COVID-19 pandemic.
While applying for PPP, Gilson said that B&M Package Solutions paid payroll taxes for its employees. In July 2020, Gilson received $250,000 in PPP funds, and the PPP loan was forgiven.
Gilson pleaded guilty to willful failure to pay over withholding taxes on July 18. She is released on bond and must report to prison on Dec. 4.
Prosecutors say the case was investigated by the IRS – Criminal Investigation Division.
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Dalton Zbierski is a digital content producer and writer at FOX61 News. He can be reached at dzbierski@FOX61.com.
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