Criminal Cases

MD Restaurant Owner Pleads Guilty to Evading $2.8 Million In Taxes

MD Restaurant Owner Pleads Guilty to Evading $2.8 Million In Taxes

A Maryland restaurant owner has entered a guilty plea on charges related to evading over $2.8 million in employment taxes.

According an official release from the IRS, John H. Worthington, a resident of Owings Mills, has owned and operated The Grill at Harryman House since 1995. Worthington issued IRS Form W-2 to his employees and withheld federal income and Social Security and Medicare (FICA) taxes from their earnings, which is the normal course of action for most employers.

Empty-restaurant-GettyImages-1162960189-2500
Credit: Getty Images

Between the years of 2010 and 2021, however, Worthington did not file the required Employer's Quarterly Federal Tax Returns (Forms 941), failing to report or pay the employment taxes in question. Worthington failed to report or pay $2,813,348.94 in employment taxes due to the federal tax agency. 

Furthermore, the IRS reports that Worthington filed a joint 2016 IRS Form 1040 -- his personal tax return -- fraudulently, and knowingly, claiming $24,207 in federal income tax withholdings that he had not paid. Due to this, he and his wife received a $9,096 refund they were not legally owed. Court documents note that proper reporting of his income would have resulted in Worthington owing $15,111.

In addition to all of this, Worthington also neglected to file his 2017 through 2021 personal income tax returns on time, despite paying himself wages from the restaurant. Finally, he failed to file corporate tax returns for 2016 through 2021 in a timely fashion, although his corporation was active and generated gross income of over $15 million during those years. 

Restaurant-table-GettyImages-180108669-2500
Credit: Getty Images

At this time, the official website for The Grill at Harryman House is returning an error.

However, the restaurant's Yelp page indicates that it still operates from 4 p.m. to 9 p.m. EST daily. The establishment's Facebook profile is also still active and was last updated with a brunch menu just two days ago on June 24. 

Worthington's sentencing date has not yet been publicly confirmed. He faces a maximum penalty of five years in prison for failing to pay employment taxes and three years in prison for filing a false tax return. He is also likely to face probation and a hefty fine. 

Judge Julie R. Rubin is presiding over Worthington's case, and the IRS Criminal Investigation Division (IRS-CI) is investigating.

Have you ever dined at The Grill at Harryman House? What do you think about this case?

You Might Also Enjoy:

share this post
Search for matches...
Rebekah Barton

Rebekah Barton

Rebekah's search engine optimization career began completely by accident as a college student. Over the course of her career so far, she has "grown up" with the SEO industry, from writing content while juggling classes to managing her own teams of writers and overseeing SEO strategy in subsequent roles. She is excited to bring her passion for high-quality content to CountingWorks, Inc.

Recommended Professionals

In the face of economic uncertainty, TaxBuzz is the industry's most up-to-date tax information.

Join 60,000 who get our weekly newsletter. No spam.

Need help selecting a firm?

Use our specialized search engine and get matched to the best accounting and tax firm for your needs.

Related Posts

Latest Posts