Wilmington businessman George Taylor, Jr., owner of National Speed, a high-performance automotive services company, is set to be sentenced on Wednesday after admitting 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 ran the business under various names since 2007, failed to pay employment taxes from 2014 to 2021, according to the documents.
More than $1.5 million of the $2,272,072 tax loss was due to “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 as well as National Speed’s operations.
Taylor employed between 10 and 47 people per year over the course of seven years, withholding trust fund taxes from their wages and providing them with IRS Forms to report their withholdings. Employees used these documents to file their annual income tax returns, unaware that Taylor did not pay the withheld amounts to the IRS.
According to court documents, Taylor avoided IRS scrutiny 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 to remind him of filing deadlines, Taylor promised to handle the tax obligations but never followed through.
Taylor even directed an employee in 2016 to open business accounts at Bank of America in the employee’s name while keeping personal control over the funds.
Taylor accepted responsibility for his actions and promised to pay restitution. According to documents, his lack of prior convictions resulted in a five-point reduction in his offense level under federal sentencing guidelines.
However, prosecutors argue that his personal background, financial advantages, and access to significant funds make him unsuitable for a sentence below the guideline range.
According to court documents, Taylor received a comfortable salary as CEO of two companies—National Speed and Tru Colors—and had access to millions of dollars from previous business ventures.
Despite these financial advantages, prosecutors allege that Taylor chose a path of greed and deception, undermining the United States tax system for personal gain.
The government has recommended a 27-month prison sentence, three years of supervised release, and $2,272,072 in restitution plus interest. They argue that Taylor’s punishment is appropriate for the severity of his actions and serves as a deterrent to future crimes.
Taylor’s sentencing hearing is scheduled for Wednesday at 2 p.m. If the court approves the government’s recommendation, Taylor will have to pay a $100 special assessment fee.
