Butler resident pleads guilty to failure to pay payroll taxes

Date: Sept. 29, 2025

Contact: [email protected]

Pittsburgh, PA - A resident of Butler, Pennsylvania, pleaded guilty in federal court to charges of willful failure to collect or pay over tax, Acting United States Attorney Troy Rivetti announced today.

Michael D. Funovits pleaded guilty to four counts before United States District Judge William S. Stickman IV.

In connection with the guilty plea, the Court was advised that, between 2016 and 2023, Funovits failed to pay over to the Internal Revenue Service payroll taxes he collected on behalf of his businesses, PennRo Associates LLC and Penn Exteriors LLC.

Judge Stickman scheduled sentencing for February 17, 2026. The law provides for a maximum total sentence of up to five years in prison, a fine of up to $250,000, or both. Under the federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.

Assistant United States Attorney Gregory C. Melucci is prosecuting this case on behalf of the government.

The Internal Revenue Service-Criminal Investigation conducted the investigation that led to the prosecution of Funovits.

IRS Criminal Investigation (IRS-CI) is the law enforcement arm of the IRS, responsible for conducting financial crime investigations, including tax fraud, narcotics trafficking, money laundering, public corruption, healthcare fraud, identity theft and more. IRS-CI special agents are the only federal law enforcement agents with investigative jurisdiction over violations of the Internal Revenue Code, obtaining a 90% federal conviction rate. The agency has 19 field offices located across the U.S. and 14 attaché posts abroad.