U.S. Attorney Gregory J. Haanstad | U.S. Department of Justice
A Wisconsin man has pleaded guilty to charges related to failing to file and pay employment taxes. On November 19, 2024, U.S. District Judge Lynn Adelman accepted the guilty plea of William S. Gallagher for one count of failing to truthfully account for and pay over employment taxes to the Internal Revenue Service (IRS), a violation of 26 U.S.C. § 7202.
The case against Gallagher began when a federal grand jury returned an indictment on October 22, 2024, charging him with twelve counts of failing to account for and pay over employment taxes for each quarter from tax years 2018 through 2020. According to the indictment and plea agreement, Gallagher owned and managed H2O Wisconsin, LLC, also known as Poolblu, a swimming pool service and retail company in Lake Geneva, Wisconsin.
Gallagher's responsibilities included withholding federal income taxes, Social Security taxes, and Medicare taxes from his employees' wages. He was supposed to hold these amounts in trust and remit them to the IRS while filing quarterly tax returns (Forms 941) reporting these amounts. Additionally, he was required to pay the employer’s matching portion of Social Security and Medicare taxes.
From tax years 2018 through 2020, Gallagher willfully failed to meet these obligations each quarter. The loss incurred by the IRS dates back to 2014 and totals over $606,000.
Sentencing is set for January 30, 2025, at which time Gallagher faces up to five years in prison along with a possible fine of up to $250,000. Following any period of imprisonment, he may also face up to three years of supervised release.
The case was investigated by the IRS Criminal Investigation Division and is being prosecuted by Assistant United States Attorney John P. Scully.
