Man Sentenced to 12 Years for Failing to Pay Over $40 Million in Payroll Taxes

North Carolina resident Bruce Gregory Harrison, III has been sentenced to 12 years in prison for payroll tax fraud, failure to timely file individual tax reports, and attempting to obstruct an IRS investigation, according to the Justice Department. Mr. Harrison was convicted of failing to pay to the Internal Revenue Services (IRS) over $40 million dollars in federal taxes that he withheld from the wages of thousands of employees in the years 2004 to 2006 and 2009. Mr. Harrison is also required to pay restitution to the IRS totaling over $43 million.

NC Businessman Withheld $40 Million from Employee Wages and Failed to Pay over Taxes


Mr. Harrison operated temporary staffing businesses in nine states under a variety of names, including U.S.A. Staffing and Compensation Management Inc. The companies were headquartered in Guilford County, N.C. Mr. Harrison’s companies assumed full responsibility for paying temporary employees’ wages withholding and transmitting payroll taxes to the IRS. In fact, Mr. Harrison failed to pay over to the IRS more than $40 million in federal payroll taxes that he had withheld from the wages of his employees. Mr. Harrison also falsified bank statements presented to auditors in order to conceal his failure to pay the taxes.

Mr. Harrison then used company funds to buy a yacht and personal residences and to finance commercial films, including National Lampoon’s Pucked and Home of the Giants.

Whistleblowers Help Stop Tax Fraud


Whistleblowers can assist federal authorities in identifying, stopping and punishing tax fraud. They can also help recover unpaid taxes. In this case, the court has ordered over $43 million in restitution be paid to the IRS.

Because their help is so important to stopping tax fraud, the IRS Whistleblower Office can provide financial compensation to a whistleblower who provides information that results in the recovery of fraudulently unpaid taxes. Under the Tax Relief and Health Care Act of 2006, whistleblowers are eligible under certain circumstances for an award from the IRS Whistleblower Office. These awards may vary from 15 and 30 percent of the total amount recovered as a result of the whistleblower’s information.

It’s only fair that everyone pay their share in taxes. If you know someone is committing tax fraud, you can help stop it. Find out about your rights as a whistleblower under the Tax Relief and Health Care Act by talking to a whistleblower attorney at Waters & Kraus. The national law firm has experienced and highly skilled tax fraud attorneys working in four locations across the country: Dallas, Los Angeles, San Francisco and Baltimore. Contact us or call our attorneys at 800.226.9880 to learn more about our practice and how we can assist.

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