Businesswoman admits failing to pay $1.2M in taxes to IRS

PROVIDENCE, R.I. (WLNE) — United States Attorney Zachary Cunha said a Rhode Island businesswoman admitted to failing to pay over $1.2 million in payroll and individual taxes to the IRS.

59-year-old Gail M. Hynson, who was president of Hynson Electrical Services, Inc., pled guilty to 10 counts of failure to account for and pay over payroll taxes and three counts of filing a false tax return.

Cunha said Hynson falsely claimed on joint individual tax returns that employment taxes were withheld and paid to the IRS. 

From the middle of 2018 to the end of 2020, the business withheld employment taxes from its employees’ paychecks, but never sent them to the IRS.

The taxes included both federal income taxes and Medicare and Social Security taxes.

Additionally, the company did not file Employer Quarterly Federal Income Tax Returns with the government.

While being the company bookkeeper, Hynson created W2s for her and her husband for 2017, 2018, and 2020.

The W2s and personal joint tax returns claimed that $18,418 in employment taxes had been withheld from the couple’s paychecks and paid to the IRS, while in reality none was paid to the government.

From 2016 to 2020, the company employed approximately 13 employees.

She is scheduled to be sentenced on Jan. 14, 2025.