It’s one thing to juggle business responsibilities, but it’s another thing entirely when a business owner decides to skip paying taxes—especially on behalf of employees.
That’s exactly what happened in a recent case out of Oregon, where the owner of two local companies has now pleaded guilty to a serious federal tax offense.
Longtime Business Owner Caught Withholding and Pocketing Employee Taxes
Joyce Leard, who ran the well-known Mr. Tree Inc. in Happy Valley, admitted in court that she failed to pay over employment taxes to the IRS for several years.
Mr. Tree, which advertised itself as a trusted name in tree removal and landscaping for over three decades, employed between 50 and 75 workers annually.
But that wasn’t her only company. Leard also owned Wall 2 Wall Hardwood Floors Inc., another Happy Valley-based business she operated from 2017 through 2024.
The IRS Wasn’t Paid, But Real Estate Was Bought
Leard was legally required to withhold Social Security, Medicare, and federal income taxes from her employees’ paychecks.
More importantly, she was also required to send those funds to the IRS every quarter.
But between late 2018 and the end of 2020, she didn’t.
Instead, she held onto the money—using those funds for personal gains.
Court documents show that she used her company’s bank account to buy about $3.5 million worth of real estate, which she titled under her own name.
Meanwhile, the IRS saw none of the taxes that had been taken from her workers’ wages.
Over $1.5 Million in Tax Losses to the U.S. Government
According to federal investigators, Leard’s actions cost the U.S. government more than $1.5 million in unpaid employment taxes.
This type of tax is essential for keeping major federal programs like Social Security and Medicare running.
It also makes up a large chunk of the overall federal income tax revenue each year.
Sentencing Set for October With Prison on the Table
Leard’s day in court isn’t over just yet. She’s scheduled to be sentenced on October 6 and could face up to five years in prison.
In addition to potential jail time, she’ll likely have to pay restitution, serve supervised release, and face hefty financial penalties.
The final sentencing will be decided by a federal district court judge, who will weigh various legal guidelines and factors before making a decision.
Federal Investigators and Prosecutors Push the Case Forward
This case was brought forward by the IRS Criminal Investigation unit, with help from the Justice Department’s Tax Division.
Acting Deputy Assistant Attorney General Karen E. Kelly announced the guilty plea, while Trial Attorneys J. Parker Gochenour and Megan E. Wessel are leading the prosecution.
It’s a strong reminder that skimming off payroll taxes—especially to fund personal luxuries—doesn’t go unnoticed and definitely doesn’t go unpunished.