A Rhode Island businesswoman has been sentenced to two years of probation for failing to pay employee payroll taxes to the IRS. Gail M. Hynson, president of Hynson Electrical Services, Inc., was also ordered to serve three months in home detention and perform 100 hours of community service. The sentence was announced by Acting United States Attorney Sara Miron Bloom.
Hynson, 59, pleaded guilty in October 2024 to ten counts of failure to account for and pay over payroll taxes and three counts of filing a false tax return. U.S. District Court Chief Judge John J. McConnell, Jr., handed down the sentence.
Court documents reveal that from 2016 through 2024, Hynson withheld employment taxes from her employees' paychecks but did not remit these funds to the IRS. Instead, much of the money was transferred to her personal bank accounts and used for personal expenses such as mortgage payments, car payments, and her daughter's student loans.
Additionally, Gail Hynson and her husband submitted false personal tax returns that did not accurately reflect their income. This income included company tax withholdings intended for the IRS but instead were diverted for personal use.
The total amount Hynson failed to remit between 2016 and 2024 is approximately $1.22 million dollars.
The case was prosecuted by Assistant United States Attorneys Ly T. Chin and Milind M. Shah and investigated by the Internal Revenue Service Criminal Investigation.
