A Jefferson County businessman has been sentenced to 18 months in prison after failing to pay employment taxes for 10 years.

Danny L. Nickelson Jr., owner of General Physiotherapy, was ordered to pay $774,081 in restitution to the IRS, along with a hefty $18,684 fine.

According to prosecutors, Nickelson withheld Social Security, Medicare, and federal income taxes from employees’ paychecks for tax years 2013 through 2022 but failed to send those funds to the IRS. He also failed to pay the employer’s matching share of those taxes.

Prosecutors said Nickelson used the money for business operating expenses and personal spending, including food, travel, retail purchases, and credit card bills.

This case is a serious reminder for business owners: payroll taxes are not optional. When an employer withholds taxes from employees’ wages, that money is considered “trust fund” money held for the government. Using it to cover business expenses or personal bills can lead to severe penalties, IRS collection action, and even criminal prosecution.

If your business has fallen behind on payroll taxes, the worst thing you can do is ignore it. Contact Ron Friedman CPA today for a free consultation. We’ll review your situation, explain your options, and help you create a plan to resolve your tax problem before it gets worse.