Jefferson County Businessman Pleads Guilty to Failing to Pay $774,081 in Employment Taxes

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A 54-year-old Jefferson County businessman, Danny L. Nickelson Jr., has pleaded guilty to failing to pay over $774,000 in employment taxes from 2013 to 2022. Nickelson, the owner of General Physiotherapy and Tomichi Industries, withheld required taxes from employees' paychecks but used the money to cover business and personal expenses instead of remitting the funds to the IRS.

Why it matters

This case highlights the importance of employers properly handling and remitting employee withholding taxes, which are held in trust for the government. Failure to do so can result in significant financial penalties and potential jail time for business owners.

The details

According to court documents, Nickelson withheld Social Security, Medicare, and federal income taxes from his employees' paychecks but failed to pay those 'trust fund taxes' to the IRS over a 10-year period. He also did not pay the employer's share of Social Security and Medicare taxes. Instead, Nickelson used the money to cover business operational expenses as well as personal expenditures, including food, travel, retail purchases, and credit card bills.

• From 2013 through 2022, Nickelson failed to pay 40 quarterly employment tax payments.
• Nickelson engaged in similar conduct from 2013 through 2015 involving Tomichi Industries, a small plastic distributor and supplier for General Physiotherapy.
• Nickelson is scheduled to be sentenced on May 12.

What’s next

As part of his plea agreement, Nickelson has agreed to repay the full $774,081 in unpaid employment taxes to the IRS.