A Lycoming County man has been sentenced for tax-related offenses, according to an announcement by the United States Attorney’s Office for the Middle District of Pennsylvania. James Michael Barr, aged 69 and a resident of Cogan Station, Pennsylvania, received a time-served sentence with an additional two years of probation. The probation includes ten months of home confinement.

Barr's sentencing follows his guilty plea in July 2024. He admitted to failing to account for and pay employment taxes owed by his company, Barr Construction, from 2017 through 2020. During this period, Barr issued normal paychecks with withheld taxes but also paid employees in cash without withholding federal taxes or remitting them to the Internal Revenue Service.

“Employers have a responsibility to their employees to withhold the proper amount of taxes and pay those taxes over to the IRS,” stated Amy MacNeely, Acting Special Agent in Charge at the IRS-Criminal Investigation Philadelphia Field Office.

In addition to his sentence, Barr faces a $5,000 fine and must make restitution of $337,000 plus civil penalties to the IRS.

The investigation was conducted by the Internal Revenue Service Criminal Investigation team. Assistant United States Attorney Geoffrey W. MacArthur handled the prosecution.