SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Michael Runco, age 56, of Olyphant, Pennsylvania, was charged in a criminal information with failing to pay the Internal Revenue Service (IRS) employment taxes withheld from his employees’ paychecks and filing a false personal income tax return omitting substantial personal income in 2010.
According to United States Attorney Bruce D. Brandler, Runco operated Runco Transportation, Inc., a business that provided school bus transportation services under contract with Mid Valley School District, Lackawanna County, Pennsylvania. During 2006 through 2010, Runco Transportation, Inc. employed as many as 12 individuals. While federal employee employment taxes were withheld from employee paychecks, Runco allegedly failed to account for and pay these tax monies over to the IRS on behalf of his employees. Runco also received compensation from his company but failed to report this income on his 2010 personal income tax return. The total tax loss to the IRS is alleged to be approximately $78,578.
The criminal information was filed pursuant to a plea agreement, which is subject to approval by the court. The plea agreement requires Runco to cooperate fully with the IRS, and to pay all taxes owed together with interest and penalties as determined by the court.
The case was investigated by the Scranton Office of the IRS. Assistant United States Attorney Todd K. Hinkley is prosecuting the case.
Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The combined maximum penalty under federal law for these offenses is eight years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Source: U.S. Department of Justice, Office of the United States Attorneys
