Wilmington business owner faces 27 months in prison for tax fraud, owes $2.2m to IRS
WILMINGTON, NC (WWAY) — Wilmington businessman George Taylor, Jr., the owner of National Speed, a high-performance automotive services business, is scheduled to be sentenced on Wednesday after he admitted to defrauding the Internal Revenue Service of more than $2.2 million in unpaid employment taxes over several years, according to court documents.
Taylor, who operated the business under various related names since 2007, failed to pay employment taxes from 2014 through 2021, the documents stated. Of the total $2,272,072 tax loss, more than $1.5 million came from “trust fund taxes,” which Taylor withheld from employees’ paychecks for federal taxes but never paid to the IRS. Instead, Taylor used the funds for his own benefit and the operations of National Speed.
During the seven-year period, Taylor employed between 10 and 47 people annually, withholding trust fund taxes from their wages and providing them with IRS Forms to report their withholdings. Employees relied on these documents to file their annual income tax returns, unaware that Taylor was not paying the withheld amounts to the IRS.
Court filings revealed that Taylor circumvented IRS oversight by using multiple employer identification numbers (EINs) for National Speed and failing to submit required quarterly tax filings, known as Forms 941, which employers must file with payments every quarter. Despite hiring bookkeepers and assistants who reminded him of filing deadlines, Taylor assured them he would handle the tax obligations but never followed through.
Taylor even directed an employee in 2016 to open business accounts at Bank of America under the employee’s name while maintaining personal access to the funds.
Taylor accepted responsibility for his actions and agreed to pay restitution. According to documents, his lack of prior convictions contributed to a reduction in his offense level by five points under federal Sentencing Guidelines. However, prosecutors argue that his personal background, financial advantages, and access to significant funds make him undeserving of a sentence below the guideline range.
Prosecutors say Taylor enjoyed a comfortable salary as the CEO of two companies—National Speed and Tru Colors—and had access to millions of dollars from previous business ventures, according to court documents. Despite these financial advantages, prosecutors say that Taylor chose a path of greed and deception, undermining the U.S. tax system for personal gain.
The government has recommended a sentence of 27 months in prison, a three-year term of supervised release, and restitution of $2,272,072 plus interest. They argue this punishment appropriately reflects the severity of Taylor’s actions and serves as a deterrent against similar crimes.
Taylor’s sentencing hearing is scheduled for Wednesday at 2pm. If the court accepts the government’s recommendation, Taylor will also be required to pay a $100 special assessment fee.
