Legal Issues

Businesswoman Sentenced For Evading $500,000 In Payroll Taxes

Businesswoman Sentenced For Evading $500,000 In Payroll Taxes

A Missouri businesswoman has been sentenced for evading over $500,000 in payroll taxes to the Internal Revenue Services (IRS).

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On December 21, Gina Marie Volmert, of Jefferson City, was sentenced to one year and one day in federal prison without parole. U.S. District Judge Stephen R. Bough also ordered Volmert to pay $513,911 in restitution to the federal tax agency.

According to an official press release about the case, the defendant was the majority owner, president, and manager of GVA and Associates, LLC. The Missouri-based company provided medical billing and coding services for electronically-submitted medical claims.

GVA withheld payroll taxes from its employees' paychecks, but Volmert did not pay all of the employment taxes that were due. Instead, she used those funds to pay her mortgage, pay for various vehicles, and purchase other household items.

She also neglected to pay premiums for employee health insurance plans, which resulted in coverage being canceled, and failed to fund employee 401(k) plans.

Per the IRS, Volmert began here tax evasion scheme as early as 2009. 

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In September 2011, Volmert and GVA co-owner, Kathy Moore, entered into an installment agreement with the IRS that required the company to pay $19,000 per month toward their tax bill. Just two months later, they defaulted on the installment plan. 

In April 2012, the IRS filed a wage garnishment notice against Volmert with MoreSource, Inc. (GVA's payroll processing firm). 

Volmert then began fraudulently submitting thousands of dollars in reimbursable expenses, admitting in court that she engaged in tax evasion by shifting her income to these fake reimbursable costs.

She falsely reported on income tot he IRS in 2012, 2013 and 2014.

This case was jointly investigated by the Department of Labor, Office of Inspector General – Office of Investigations and the IRS-Criminal Investigation division.

What do you think about Volmert's tax evasion scam?

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Rebekah Barton

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