United States Attorney's Office for the Eastern District of Wisconsin
11/19/2024 | Press release | Distributed by Public on 11/19/2024 16:58
Wisconsin Man Pleads Guilty to Failing to File Employment Tax Returns and to Failing to Pay Employment Taxes
Press Release
Wisconsin Man Pleads Guilty to Failing to File Employment Tax Returns and to Failing to Pay Employment Taxes
For Immediate Release
U.S. Attorney's Office, Eastern District of Wisconsin
United States Attorney Gregory J. Haanstad announced that on November 19, 2024, U.S. District Judge Lynn Adelman accepted the guilty plea of William S. Gallagher to one count of failure to truthfully account for and pay over employment taxes to the Internal Revenue Service (IRS), in violation of 26 U.S.C. ยง 7202.
On October 22, 2024, a federal grand jury returned an indictment charging Gallagher with twelve counts of failure to truthfully account for and pay over employment taxes for each quarter in tax years 2018 through 2020. According to the indictment and plea agreement, Gallagher was the owner and manager of a swimming pool service and retail company in Lake Geneva, Wisconsin.
The company, H2O Wisconsin, LLC, or Poolblu, employed approximately 15 workers. Gallagher was required to withhold federal income taxes, Social Security taxes, and Medicare taxes from his employees' wages, hold those amounts in trust, and pay them over to the IRS. Additionally, Gallagher was responsible for filing quarterly tax returns (Forms 941) reporting these amounts to the IRS.
Gallagher was further required to pay the employer's matching portion of Social Security and Medicare taxes. For each quarter in tax years 2018 through 2020, Gallagher willfully failed to truthfully account for and pay over these taxes. Dating back to 2014, the loss to the IRS totaled over $606,000.
Sentencing is scheduled for January 30, 2025, at 10:00 a.m., before Judge Adelman. At sentencing, Gallagher faces up to five years in prison and up to a $250,000 fine. He also faces up to three years of supervised release after completing any period of imprisonment.
The IRS, Criminal Investigation Division, investigated the case, which Assistant United States Attorney John P. Scully is prosecuting.
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For Additional Information Contact:
Public Information Officer
414-297-1700
Updated November 19, 2024
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