U.S. attorney: Tyler lawyer withheld taxes from employee checks, pocketed the funds

TYLER — A Tyler attorney pleaded guilty Monday to federal employment tax violations that allegedly totaled to a tax loss of more than $300,000. According to our news partner KETK, 60-year-old John Bennett White IV pleaded guilty to failure to pay employment taxes. Court documents show that White was an attorney and firm manager for the Tyler law firm, J. Bennett White, P.C. He had the duty to pay over the employment taxes on behalf of the firm’s employees to the IRS. The U.S. attorney’s office said that between 2007 and 2015, White made sporadic and partial efforts to pay his firm’s employment tax liabilities. “Mr. White withheld taxes from his employees’ paychecks but repeatedly failed to turn those funds over to the IRS,” Ganjei said. “White instead chose to pocket his employees’ tax payments to fund his lifestyle. This sort of conduct harms every taxpayer, not only because of the lost public revenue, but also because of the expense of recovering the lost funds from individuals such as White.” White made partial payments on 10 occasions and no payment for seven quarters. The attorney’s office said that instead of paying employment taxes, White paid other creditors and his own personal expenses. White could face up to five years in prison.