MARION – A licensed contractor who formerly operated Wood and Sons Electric (WASE) in Knox County has pleaded guilty to two counts of tax evasion after an IRS investigation.

According to a press release from the Cincinnati field office of the IRS, Ryan H. Wood, 54, of Marion was charged with failing to pay FICA payroll tax for two years, an amount totaling $413,729.

As a subcontractor installing electrical wiring and fixtures in new buildings, Wood was responsible for payroll, including withholding taxes and paying the IRS. According to the release, he withheld taxes but failed to pay the IRS its portion in 2014 and 2015.

“Employers have a responsibility to their employees to withhold the proper amount of taxes and pay those taxes over to the IRS,” Bryant Jackson, IRS-CI Special Agent in charge of the investigation, said in the release. “When employers fail to do so, it affects revenue to the United States government, but more importantly, it affects their employees' Medicare and Social Security benefits.” 

Wood is facing a possible five-year sentence, the statutory maximum, but the defendants’ prior record and other circumstances will factor in to the penalty. The release stated in most cases, the sentence is less than the five-year maximum.

U.S. District Court Judge Edmund A. Sargus will oversee sentencing.

This case is being prosecuted by U.S. Attorney’s Office for the Southern District of Ohio, following an investigation by the IRS – Criminal Investigation.