The owner of Guilford package delivery companies was sentenced Wednesday, Oct. 9 in a federal court in Hartford to 19 months in prison for failing to pay more than $1 million in business payroll taxes, according to the U.S. Attorney for the District of Connecticut Vanessa Roberts Avery.
Michelle Ann Gilson, 38, of Guilford, was sentenced by U.S. District Judge Vernon D. Oliver in Hartford to 19 months of imprisonment, followed by three years of supervised release. Oliver ordered Gilson to pay the IRS restitution of $1,407,831.16. The failure to pay payroll taxes was red flagged when the IRS investigated her use of Covid-related Paycheck Protection Program funds where she signed documents saying she had paid the payroll taxes.
She had pleaded guilty to willful failure to pay over withholding taxes on July 18, 2024.
According to court documents and statements made in court, Gilson co-owned and co-operated B&M Package Solutions, Inc. and formerly owned and operated Epic Empirez, Inc., both Guilford-based package delivery companies. As co-owner, Gilson was responsible for company books, payroll, and invoices, and for collecting and paying over certain federal taxes from her employees, namely federal income taxes and FICA taxes, which include Medicare and Social Security taxes. She was also responsible for ensuring that B&M Package Solutions and Epic Empirez, as employers, paid their own share of FICA taxes.
An investigation revealed that, for multiple quarters during the 2017 through 2022 tax years, Gilson failed to report employees’ federal income and FICA taxes, and failed to pay over withheld amounts and the employers’ share of FICA taxes.
During this time, Gilson paid more than $600,000 in mortgage payments and property improvements to her Guilford home, and made approximately $140,000 in payments to casino resorts.
In 2020, Gilson applied for a government loan through the PPP, which was authorized by Congress as part of the March 2020 Coronavirus Aid, Relief, and Economic Security (CARES) Act to provide emergency financial assistance to Americans suffering the economic effects of the COVID-19 pandemic.
As part of the PPP application, Gilson attested that B&M Package Solutions paid payroll taxes for its employees. In July 2020, Gilson received $250,000 in PPP funds. The PPP loan was subsequently forgiven.
Gilson, who is released on bond, is required to report to prison on Dec. 4.
This matter was investigated by Internal Revenue Service – Criminal Investigation Division. The case was prosecuted by Assistant U.S. Attorney Elena L. Coronado.
