The owner of two Massachusetts companies, Bowmar Steel Industries Inc. and Teleconstructors Inc., has pleaded guilty to neglecting to collect, account for, and remit payroll taxes due to the IRS.
Kenneth Marston, based in Kingston, Massachusetts, operated Bowmar Steel Industries, a steel fabrication firm, and Teleconstructors, which offered installation services for cellular towers. He was responsible for withholding Social Security, Medicare, and income taxes from employee paychecks to be sent to the IRS.
Between March 2015 and December 2018, Marston failed to remit payroll taxes for approximately $3.8 million in wages, resulting in a tax loss for the IRS estimated between $550,000 and $1.5 million.
Marston is set to be sentenced on January 3, 2025, facing a maximum of five years in prison, along with potential supervised release, restitution, and monetary penalties. The final sentence will be determined by a federal district court judge, considering the U.S. sentencing guidelines among other factors.
The case is under investigation by IRS Criminal Investigation.
