PHILADELPHIA (KYW Newsradio) — A Philadelphia CEO is accused of not paying the IRS more than $2 million in taxes on behalf of an IT staffing company.
Federal prosecutors allege 76-year-old Thomas Stafford, CEO and president of Information Systems Staffing, Inc., was responsible for collecting, accounting for, and paying to the IRS the company’s trust fund taxes — Social Security, Medicare, and federal income taxes employers are required to withhold from paychecks and give to the IRS quarterly.
An indictment accuses Stafford of failing to pay $2,008,046.63 from the first quarter of 2019 to the fourth quarter of last year.
Prosecutors also say Stafford used the company’s bank accounts, which he controlled, to pay hundreds of thousands of dollars in personal expenses.
The indictment further alleges Stafford committed bankruptcy fraud after filing for Chapter 13 bankruptcy in 2023.
Stafford proposed a plan to pay creditors $750 monthly over five years. He’s accused of understating his true income and failing to disclose that he controlled various properties to pay creditors less than what they were entitled to.
If convicted, Stafford could face up to 130 years in prison.