Carrollton Business Owner Sentenced to Federal Prison for Failing to Pay Over $2.4 Million in Payroll Taxes
Barry Lee White, 59, of Carrollton, Georgia, has been sentenced to one year and ten months in federal prison for willfully failing to pay more than $2.4 million in payroll taxes. Following his prison term, White will be subject to three years of supervised release. He has also been ordered to pay restitution totaling $2,499,473.07.
U.S. Attorney Ryan K. Buchanan commented on the case, stating, “Payroll taxes fund important social insurance programs, including Social Security and Medicare. White refused to pay payroll taxes after withholding those funds from his employees’ paychecks for years – stealing from his employees and United States taxpayers. Employers who fail to comply with their legal obligations will be held accountable.”
Demetrius Hardeman, Special Agent in Charge of IRS Criminal Investigation’s Atlanta Field Office, added, “Employment tax evasion is stealing from the government and the American taxpayer. Business owners are entrusted to collect and turn over IRS withholding taxes; not doing so may affect employees’ future Social Security and Medicare benefits. Investigating employment tax fraud is very important to IRS Criminal Investigation. Our special agents will work hard to ensure those who engage in this criminal activity are held accountable.”
Court records show that between 2012 and 2019, White owned and operated two construction maintenance and electrical companies: I-Barr Construction, Inc. and T-Line Construction, LLC. As the operator of these companies, White was responsible for withholding Federal Insurance Contributions Act (FICA) taxes—covering Social Security and Medicare—from his employees’ gross pay, along with federal income taxes. From at least 2015 to 2018, White withheld more than $1.8 million in payroll taxes but failed to pay these to the IRS. Additionally, he neglected to pay over $600,000 required for the employer’s share of Social Security and federal unemployment taxes.
White was convicted on May 7, 2024, after pleading guilty to the charges. The case was investigated by the Internal Revenue Service Criminal Investigation unit and prosecuted by Assistant U.S. Attorneys Angela Adams and Erin N. Spritzer.
