Temp. Employee Firm Owner Guilty of Tax Evasion
Bruce Alexander Brown, the former owner of an employee-leasing business, Excell Personnel, Inc., pleaded guilty to one count of willful failure to account for and pay more than $300,000 in payroll taxes owed.Brown of Dallas, charged with various tax offenses in an 11-count indictment, acknowledged in his plea that he has outstanding obligations to the IRS for taxes owed by Excell Personnel as well as for his personal income taxes.
According to court records, from 1996 to 2003, Brown’s company “leased” employees to companies that did not want to directly hire their own workers. The customers did not pay the employees that Excell provided, but rather paid a fee to Excell that included the gross wages that would be owed to the employees for their labor, plus an administrative fee. Excell, in turn, paid the employees their wages, making deductions for the required withholding of income taxes.
Brown admitted he deliberately chose not to pay the IRS the required withholding taxes, Social Security taxes and Medicare taxes. During the fourth quarter of 2002, Brown failed to pay $297,384 in federal income taxes.
He faces up to five years in prison and a $250,000 fine.
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