Maryland Business Owner Sentenced to Prison for Payroll Tax Violations

A Maryland telecommunications executive has been sentenced to prison after a federal court found he failed to properly handle payroll taxes taken from employees’ paychecks.

Prosecutors say the case highlights how employers are legally required to collect and submit certain taxes on behalf of their workers.

Jury Conviction After Federal Trial

Brett Hill, a business owner from Parkton and Berlin, Maryland, was sentenced to 18 months in federal prison.

The sentencing follows a jury verdict on April 14, 2025, where Hill was found guilty on 16 counts of willfully failing to collect and pay employment taxes.

Federal prosecutors said Hill served as either the CEO or president of two telecommunications companies during the time the offenses occurred.

How the Payroll Tax Scheme Worked

According to evidence presented in court, Hill was responsible for withholding federal income taxes as well as Social Security and Medicare taxes from his employees’ wages.

Employers are required to send these withholdings to the federal government and also contribute their own share of Social Security and Medicare taxes.

Investigators determined that between the second quarter of 2016 and the fourth quarter of 2018, Hill deducted those taxes from employee paychecks but never transferred the funds to the government.

During that same period, he also failed to file the quarterly employment tax returns required by law.

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Funds Used for Personal Salary and Expenses

Instead of forwarding the withheld taxes, prosecutors said Hill used company funds for other purposes. Court records indicate he continued paying himself a salary and covering other expenses while the tax obligations remained unpaid.

Authorities estimate the unpaid taxes caused a loss to the United States government of more than $2 million.

Court Orders Prison Time and Financial Penalties

U.S. District Judge Stephanie A. Gallagher handed down an 18-month prison sentence. In addition to incarceration, Hill must serve three years of supervised release once he completes his prison term.

The court also ordered him to pay approximately $658,485.81 in restitution to the United States.

Investigation and Prosecution

The case was investigated by IRS Criminal Investigation, the division responsible for examining financial crimes related to federal tax laws.

The prosecution was handled by Trial Attorneys Shawn Noud and Catriona Coppler from the U.S. Department of Justice Criminal Division’s Tax Section.

Impact and Consequences

This case underscores the serious legal consequences of failing to remit payroll taxes. When employers withhold taxes from employees’ wages, those funds legally belong to the federal government.

Failure to transfer those funds can result in criminal charges, financial penalties, and prison time. Authorities say such violations not only harm government revenue but also undermine the tax system designed to fund programs like Social Security and Medicare.

For employees, cases like this can also create complications in verifying their tax contributions if employers fail to report or submit the withheld funds.

What’s Next?

With sentencing now completed, Hill will begin serving his 18-month federal prison term. After his release, he will remain under supervised federal monitoring for three years.

Meanwhile, the restitution order ensures the government can pursue repayment of the remaining tax debt through financial recovery processes.

Authorities say enforcement efforts against employment tax violations will continue nationwide.

Summary

A Maryland telecommunications executive has been sentenced to prison for failing to send payroll taxes withheld from employees to the federal government.

The case revealed years of unpaid employment taxes totaling more than $2 million, resulting in criminal convictions and financial penalties.

Bulleted Takeaways

• Maryland businessman Brett Hill was sentenced to 18 months in prison for payroll tax violations.
• A federal jury convicted him in April 2025 on 16 counts of willfully failing to pay employment taxes.
• Hill withheld federal income, Social Security, and Medicare taxes from employees but did not submit the funds to the government.
• The offenses occurred between 2016 and 2018 while he ran two telecommunications companies.
• Authorities say the scheme caused more than $2 million in tax losses to the United States.
• Hill must also complete three years of supervised release and pay $658,485.81 in restitution.
• The investigation was led by IRS Criminal Investigation, with prosecutors from the Justice Department’s Tax Division handling the case.