On August 7, the Department of Justice (DOJ) announced the conviction of Eric Moesle, in Pataskala, Ohio. Mosele, an office manager for Elemental Dental, pleaded guilty to charges related to failing to pay over $750,000 in employment taxes and not filing the necessary employment tax returns.

According to court documents and statements made in court, from 2014 through 2020, Moesle was responsible for payroll, bookkeeping, and tax return preparation at Elemental Dental. During this period, Elemental Dental withheld Social Security, Medicare, and income taxes from its employees’ wages. These withholdings were documented on pay stubs and W-2 Forms issued to employees. However, Elemental Dental did not pay these taxes to the IRS nor file the required employment tax returns. Additionally, the business did not pay over the employer’s share of these taxes. 

When interviewed by IRS representatives in 2022, Moesle stated that he did not know the employment taxes had not been paid and that Elemental Dental’s employment tax returns and W-2 Forms had not been filed. He further stated that any failures or omissions were unintentional. According to the government, these representations were false.

A sentencing date has not yet been set, but Moesle faces a maximum penalty of five years in prison, some period of supervised release, and monetary penalties. The DOJ reported that Moesle’s actions resulted in a tax loss to the IRS of $760,255.

If you are a business owner or manager facing similar issues with employment taxes, it is essential to seek legal counsel promptly. Understanding your rights and obligations can make a significant difference in the outcome of your case. The attorneys at Chilivis Grubman represent clients of all types and sizes in connection with violations of federal law, healthcare law, and other white-collar investigations. If you need assistance with such a matter, please contact us today.