Texas construction company owner sentenced in IRS tax obstruction case

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Texas construction company owner sentenced in IRS tax obstruction case — Texas owner sentenced for tax case

A long-running federal tax enforcement case in Texas has ended with a prison sentence for the owner of a construction-related business. The case centers on more than $1.4 million in unpaid employment taxes and conduct that authorities say continued from 2013 through 2024.

Highlights

David Stone, owner of Engineered Metals Company, was sentenced to 30 months in prison for obstructing IRS efforts to collect unpaid employment taxes.
From 2013 to 2024, Stone concealed income and used company accounts for personal expenses to avoid IRS collection of employment taxes.
In addition to prison, Stone must serve one year of supervised release and pay approximately $1,384,766 in restitution, with a total tax loss of about $1.4 million.

Sentence details and tax obstruction findings

As reported by U.S. Department of Justice, David Stone, owner and operator of Engineered Metals Company, was sentenced today to 30 months in prison for obstructing the IRS's efforts to collect unpaid employment taxes tied to the business.

Court documents and statements made in court say Stone willfully failed to pay over employment taxes he had collected on behalf of employees at the roofing, siding and sheet metal company. After the IRS began collection proceedings, he stopped filing individual income tax returns and used business accounts to cover personal expenses, including child support and alimony, in order to keep funds out of his own hands and conceal income from the agency.

Federal authorities say those obstructive actions continued from 2013 through 2024. Stone previously pleaded guilty to one count of corruptly endeavoring to obstruct the due administration of the internal revenue laws.

Financial penalties and enforcement impact

In addition to the prison term, Stone was ordered to serve one year of supervised release and to pay about $1,384,766 in restitution to the United States. The Justice Department said the conduct caused a total tax loss of about $1.4 million.

The case highlights continued federal scrutiny of employment tax compliance, particularly when payroll taxes collected from workers are not remitted to the government. IRS Criminal Investigation investigated the case, and the announcement was made by Assistant Attorney General Colin McDonald of the Justice Department's National Fraud Enforcement Division and U.S. Attorney Justin Simmons of the Western District of Texas.

Pakistan’s income tax return filing deadline for Tax Year 2026 came under renewed pressure as tax experts and business groups urged the Federal Board of Revenue to extend the submission window into December. Our earlier coverage noted that the final return form was notified in early September and that recurring IRIS portal glitches, along with added documentation requirements, were creating compliance risks and prompting formal extension requests.

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