The Auto Finders, Inc. continuously failed to meet its payroll tax obligations to the IRS, resulting in a substantial underpayment of tax
Raleigh, N.C.—Carol Jean Darrow, 60, pled guilty this month to a criminal information to failure to pay $346,775 in withheld employee payroll taxes. Darrow is the co-owner and operator of The Auto Finders, Inc. (TAF), a dealership headquartered in Durham, N.C. The defendant managed the financial affairs of TAF, including approving payments to creditors and payroll taxes due.
“For five years, this auto dealer took money from their employees’ paychecks, supposedly for taxes, and then pocketed it for themselves,” said U.S. Attorney Michael Easley.
TAF was required to pay over the withheld payroll taxes to the Internal Revenue Service (IRS) through periodic deposits. In addition, TAF was required to file, at the end of each calendar quarter, an Employer’s Quarterly Federal Income Tax Return (Form 941) setting forth the total amount of wages and other compensation subject to withholding, the total amount of income tax withheld, the total amount of FICA taxes due, and the total tax deposits.
In her position at TAF, Darrow was responsible for collecting, truthfully accounting for, and paying over the payroll taxes due and owing from TAF to the IRS. Between 2016 and 2021, TAF continuously failed to meet its payroll tax obligations to the IRS, resulting in a substantial underpayment of tax. She faces up to 5 years in prison.
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