VIRGINIA BEACH — A Virginia Beach may could spend up to five years in prison for not paying about $1 million in payroll taxes.
Michael Popina, the 61-year-old owner of Chesapeake Coatings and Decks, Inc., pleaded guilty Friday to failing to pay the IRS payroll tax. He is scheduled to be sentenced on Oct. 2.
Officials say that Popina failed to pay the IRS about $130,000 in payroll taxes between 2010 and 2013 for work done at his painting and sandblasting company, according to the U.S. Department of Justice.
Popina pleaded guilty to spreading his employees’ regular pay into two checks, but only withheld taxes and reported the income for one of the checks. Officials say he used the tax savings to keep the business open, according to the DOJ.
Officials say Popina didn’t account for about $4 million in the scheme and failed to pay the IRS $950,000 in payroll taxes.