A Texas woman sentenced a year and a day in federal prison for withholding over $1.3 million in employment taxes from her staff and keeping the money for herself.
Donna M. Savoy, of Parker, Texas, was sentenced today for knowingly neglecting to pay those taxes on behalf of Donna Beth Creations, a bridal studio she owned and operated in Denver, Colorado, for more than ten years.
According to court filings, Savoy was legally required to withhold Social Security, Medicare, and income taxes from her employees’ earnings. Her duties also included filing quarterly employment tax reports and paying withheld cash directly to the IRS.
Instead, from the first quarter of 2014 to the fourth quarter of 2024, Savoy acknowledged keeping the money. While she effectively withheld taxes from her employees’ paychecks, she never remitted the funds to the IRS and did not file any quarterly employment tax reports for the entire ten-year period.
According to court records, she spent the withheld tax money on her personal and company costs, resulting in a total loss to the US government of more than $1.3 million.
Savoy pleaded guilty to one count of willfully failing to account for and pay trust fund taxes.
The IRS criminal inquiry performed the inquiry. Trial Attorney Stuart A. Wexler of the Criminal Division’s Tax Section prosecuted the case, and Assistant Attorney General Colin McDonald of the Justice Department’s National Fraud Enforcement Division announced the sentence.
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