CEDAR RAPIDS – A former business owner who withheld federal taxes from his employees’ paychecks but did not forward the money withheld to the Internal Revenue Service (“IRS”), was sentenced on October 22, 2013, to more than two years in federal prison.
Eric Holub, 46, from Clarence, Iowa, received the prison term after a July 12, 2013, guilty plea to one count of failing to pay over to the IRS money he had withheld from his employees’ paychecks for required federal employment taxes.
In a plea agreement, Holub admitted that he was the owner of Premier Security, a private security business previously located in Cedar Rapids, and had served as the President and Treasurer of the business from 2003 through 2011. Holub admitted that from January 2008 through December 2009, he was responsible for withholding income taxes and Federal Insurance Contributions Act (“FICA”) taxes from the pay of Premier Security employees and was responsible for forwarding those withholdings to the IRS. However, Holub admitted that for six calendar quarters in 2008 and 2009, he failed to forward the money he withheld from his employees’ pay to the IRS, even though he knew he was required to do so. In the plea agreement, Holub further admitted he also failed to pay to the IRS other taxes owed by Premier Security from 2008 through 2011. In total, Holub failed to send the IRS approximately $460,000 in taxes owed by Premier Security.
Holub was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Holub was sentenced to 30 months’ imprisonment. A special assessment of $100 was imposed, and he was ordered to make $438,426.17 in restitution to the IRS. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
“IRS Criminal Investigation takes these violations of law very seriously,” said Sybil Smith, Special Agent in Charge of IRS Criminal Investigation. “Business owners have a responsibility to withhold income taxes for their employees and then remit those taxes to the Internal Revenue Service.”
Holub was released on conditions previously set and is to surrender to the United States Marshal on November 12, 2013.
The case was prosecuted by Assistant United States Attorney Anthony Morfitt and investigated by Internal Revenue Service Criminal Investigation.
6 thoughts on “Debter’s prison? Iowa man sent to jail for not paying IRS”
Eric is my dad. He’s an amazing person who got caught up in an addiction with money. His wife played a huge part in thus as well and there was so much more going on. He is a good person and took care of his family no matter the cost. Yes he’s in prison but he does not deserve to be there over money….
he’s lost everything including is unfaithful wife.
you don’t know him or the situation he was in so just shut your mouths please.
The money he failed to pay to the IRS actually belonged to his employees, it was not his money–he was just the middle man. Therefore, it was in reality stolen from those employees. They trusted him to pay the money withheld for their taxes to the IRS and he betrayed that trust. He deserves to spend time in jail for theft.
As for those people who earn cash–such as tips–and fail to report it, they are costing all of us money. If everyone paid their fair share, none of us would have to pay the high amounts that we do. Every time someone cheats on their taxes, they are cheating the rest of us.
Will you go to prison if you don’t pay the fine on obumercare ?
Katie-do you really think that will ever happen? It has been going on as long as I can remember.
Good. Now they can go after the employers who pay employees under the table and employees who don’t pay taxes on tips.
@Katie-Just a follow up for you is-I know of a bartender who works downtown in Clear Lake that makes over $500.00 on the weekend in tips and does not declare any of the money. He is on Title 19 and foodstamps but has the money to take expensive vacations. It is just not right that this goes on.