By: Tracie Carter
A South Jersey construction company owner has admitted to failing to turn over more than $810,000 in payroll taxes owed to the federal government.
According to a statement released by federal authorities, Tyrone Pitts, 60, of Lawnside, pleaded guilty before Chief U.S. District Judge Renée Marie Bumb to failing to collect, account for and pay payroll taxes to the IRS.
Court documents show that Pitts owned and operated Arline Electrical Construction Services LLC from 2020 through 2023 and had significant control over the company’s financial operations.
Federal officials said Pitts was responsible for withholding and forwarding payroll taxes from employees’ wages to the IRS.
Instead, prosecutors said he almost entirely failed to file required employment tax returns and did not pay approximately $810,403 in employment taxes during that period.
Pitts faces a maximum of five years in federal prison and a fine of up to $250,000.
Sentencing is scheduled for January 12, 2027.