A businesswoman from Rhode Island has been sentenced for failing to pay $1.22 million in payroll taxes. Gail M. Hynson, 59, is the president of Hynson Electrical Services, Inc. She took money from employees’ paychecks but did not send it to the IRS. This went on for eight years. She also misreported her personal income. The U.S. Attorney’s Office announced her sentence on Thursday.

Hynson pleads guilty and receives sentence

In October 2024, Hynson pleaded guilty to several charges. She admitted to 10 counts of not paying payroll taxes. She also admitted to three counts of filing false tax returns. Hynson’s punishment includes two years of probation. The first six months will be spent under home detention. She is also required to perform 100 hours of community service. The judge made the ruling after a lengthy investigation into her actions.

How she took the money and used it

From 2016 to 2024, Hynson took the money for payroll taxes from her employees’ paychecks. This included federal income tax, Social Security, and Medicare withholdings. However, instead of sending the money to the IRS, Hynson kept it. She put a large portion of the funds into her personal bank accounts. She used the money to pay for her own expenses. This included her mortgage, car payments, and her daughter’s student loans. She never intended to send it to the IRS.

Businesswoman and her husband filed false tax returns

Hynson and her husband also filed false tax returns with the IRS. They did not report large parts of their income. This included the payroll taxes that she took. By doing this, they tried to hide the money from the IRS. This was part of the larger tax fraud scheme. The couple’s actions showed how serious the crime was.

Between 2016 and 2024, Hynson failed to send about $1.22 million in payroll taxes to the IRS. This is a large amount of money. The U.S. Attorney’s Office said that it was a serious crime. Her actions hurt both her employees and the government. Now, she must face the consequences of her actions.