Highlandville business owner pleads guilty to tax charges

A Highlandville business owner has pleaded guilty to failing to pay employee taxes and personal income taxes.

Paul Rose Jr., 46, waived his right to a grand jury and pleaded guilty before U.S. Magistrate Judge James England to two counts of failing to pay taxes, according to a news release from the office of the U.S. attorney for the Western District of Missouri.

Rose owned and operated Newby Enterprises, which did business as J.B. Enterprises Inc. and produced industrial-sized foam-insulated cardboard boxes purchased and used by 3M Co.’s Springfield operation, the release said.

In his guilty plea, Rose admitted from 2006 to 2009 he withheld $37,521 in employment, or Federal Insurance Contributions Act, taxes from employee paychecks and knowingly failed to pay the taxes to the Internal Revenue Service.

During the same three years, Rose admitted he failed to file individual tax returns, thus concealing income earned from his business. According to the release, based on Rose recording more than $3.2 million in gross revenues and more than $1.7 million in gross profit 2006-09, he owed the IRS $375,631 in income taxes.

Under federal statutes, Rose could be sentenced to up to six years in federal prison without parole and be ordered to pay a fine of up to $35,000. A sentencing hearing will follow the presentence investigation by the U.S. Probation Office.

The case is being prosecuted by Assistant U.S. Attorney Randall Eggert and was investigated by IRS-Criminal Investigation.[[In-content Ad]]