LAKEWOOD – A Township man has admitted to failing to pay over $10 million in payroll taxes in connection to several of his businesses, officials said.
Josef Neuman, 37, of Lakewood, pleaded guilty to information charging him with willful failure to pay over payroll taxes for one of his businesses in 2018.
Neuman was chief executive officer of a Lakewood business that provided administrative services to operators of nursing homes and other health care facilities. This included at least 20 entities co-owned and operated by Neuman.
Neuman was responsible to collect, truthfully account for, and pay over to the IRS the companies’ payroll taxes. However, in the tax years 2017 and 2018, Neuman failed to pay over $10 million in payroll taxes owed by the companies.
According to officials, Neuman knew that payroll taxes were due and owed to the IRS at this time, but continued to pay other business expenses and employee salaries, instead of the unpaid taxes, while tax liabilities continued to accrue.
The charge to which Neuman pleaded guilty carries a maximum penalty of five years in prison and a maximum fine of $10,000. Sentencing is scheduled for December 13.
U.S. Attorney Sellinger credited special agents of IRS – Criminal Investigation, under the direction of Special Agent in Charge Tammy Tomlins, with the investigation leading to the guilty plea.