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Morris County Company Exec Charged With Stiffing IRS $1.5M In Taxes Takes Plea

IRS
IRS Photo Credit: IRS.gov

A Morris County window tinting company executive accused of short-changing the government by $1.15 million on employment taxes pleaded guilty to a lesser charge, federal authorities said.

As vice president of Rockaway-based A Pain In The Glass Inc., Stephen Walloga was responsible for collecting, accounting for and paying over employee payroll taxes, said Michael Montanez the special agent in charge of IRS-Criminal Investigation’s Newark Field Office.

Walloga didn’t pay those taxes for nearly a decade, Montanez said.

He subsequently took a deal from the government rather than face trial, admitting that he withheld but failed to pay over to the IRS approximately $37,524 in payroll taxes on behalf of employees for the final quarter of 2017, the special agent in charge said.

Walloga also failed to pay over an additional $1,112,963 in employment taxes from 2010 through 2019, he said.

Montanez credited special agents of his office and that of Acting U.S. Attorney Rachel A. Honig for the investigation leading to the plea – secured by Assistant U.S. Attorney Joseph N. Minish – which was entered via video conference before U. S. District Judge Stanley R. Chesler in Newark.

“With only a few days left in this year’s filing season, today’s guilty plea should send a strong deterrent message to those that would attempt to avoid paying their fair share of taxes,” Montanez said. “We will continue to vigorously pursue those individuals who attempt to cheat the system.”

The judge scheduled sentencing for Sept. 29.

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