SPRINGFIELD, Mo. -- The owner of a business in Highlandville pleaded guilty in federal court on Monday for failing to pay his employees’ FICA taxes and for failing to pay his own income taxes.
Paul Rose Jr., 46, of Highlandville, waived his right to a grand jury and pleaded guilty before U.S. Magistrate Judge James England to a federal information that charges him with two counts of failing to pay taxes.
Rose owned and operated Newby Enterprises, which did business as J.B. Enterprises, which is based in Highlandville. The company produced industrial-sized foam-insulated cardboard boxes which were purchased and used by the 3M Company's plant in Springfield.
By pleading guilty, Rose admitted he withheld a total of $37,521 in employment, or FICA, taxes from his employees’ paychecks from 2006 to 2009, but willfully and knowingly failed to pay over the taxes to the Internal Revenue Service.
Rose also admitted he failed to file individual income tax returns from 2006 to 2009, thereby failing to report income earned from his business. Based on more than $3.2 million in gross revenues and more than $1.7 million in gross profit for the years 2006 through 2009, Rose owed the Internal Revenue Service $375,631 in unpaid income tax.
Under federal statutes, Rose is subject to a sentence of up to six years in federal prison without parole, plus a fine up to $35,000. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.