A Wilmington businessman, who once led efforts to curb local gang violence through a brewery, pleaded guilty on Thursday in a case involving employment tax crime.
George William Taylor Jr. pleaded guilty to failing to pay over $2 million in employment taxes and to not filing employment tax returns, according to a news release from the U.S. Attorney's Office Eastern District of North Carolina. Taylor owned and operated National Speed, a high-performance automotive services business.
Taylor, chairman and president of National Speed, withheld Social Security, Medicare, and income taxes from employees’ wages, but did not pay those withholdings over to the Internal Revenue Service, nor did he file necessary employment tax returns between 2014 and 2021, according to the release. In the same time frame, Taylor did not pay the employer's share of taxes to the IRS.
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In total, the IRS tax loss amounted to $2,272,072, according to the release.
Taylor formerly owned TRU Colors Brewing, a beverage company located on Greenfield Street that employed active gang members. The brewery closed in 2022 , with Taylor citing a lack of funds and heightened local and national media attention as key reasons for the decision.
In 2021, three validated gang members were arrested on first-degree murder charges in connection with a double homicide that took place at a New Hanover County residence owned by Taylor. The residence was allegedly the home of Taylor's son.
"The vast majority of working Americans pay their fair share in taxes, supporting our nation’s infrastructure, education, and national security. But for years this businessman took millions from employees’ paychecks, supposedly for taxes, and spent it to pad his business and personal expenses," U.S. Attorney Michael Easley said in the release. "Tax cheating like this undermines faith in our system and can’t be tolerated in honest business. Hardworking taxpayers won’t stand for it, and neither will the IRS."
Trial Attorney Brian Flanagan of the Tax Division and Assistant U.S. Attorney Ethan Ontjes of the Eastern District of North Carolina are prosecuting the case, according to the release. IRS Criminal Investigation is investigating the case.
"Failure to pay over withheld taxes is a serious offense. Business owners have a responsibility to withhold income taxes for their employees and then remit those taxes to the IRS," Donald Eakins, special agent in charge with the IRS Criminal Investigation, said in the release. "CI special agents will pursue anyone who collects these taxes and uses the funds for their own personal gain."
Taylor faces a maximum penalty of five years in prison alongside a period of supervised release, restitution, and monetary penalties, according to the release. A federal district court judge will determine Taylor's sentencing on Nov. 19.
This article originally appeared on Wilmington StarNews: Former leader of TRU Colors in Wilmington pleads guilty to tax evasion
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