A lumber mill owner in Brookneal, Va., pleaded guilty to one count of willful failure to collect or pay taxes, pocketing Medicare and Social Security taxes from his employees for at least seven years, according to a press release by the U.S. Attorney's Office, Western District of Virginia.
James Edward Adams, 65, took over Adams Lumber Company in 2011. From 2012 to 2022, he incorporated additional lumber and flooring companies, including Adams Wood, Halifax Forest, Halifax Flooring Products, Halifax Lumber Products and Timber Trucking.
From 2014–2021, Adams withheld employment trust fund taxes from his employees but did not pay “the vast majority” of the money to the IRS, resulting in an outstanding balance of $598,800.
Adams now faces up to five years in prison and up to $250,000 in fines.
