Chester County Former CFO Faces Six Counts of Employment Tax Nonpayment

United States Attorney's OfficeImage via United States Attorney's Office

PHILADELPHIA, PA — United States Attorney Jacqueline C. Romero announced that David L. Shull, 68, of Largo, FL (formerly of West Chester, PA) was charged by Indictment on Monday, April 24, 2023, with six counts of failure to pay over employment taxes for a Chester County adult day care facility from 2013 through 2017, and failing to account for employment taxes owed in the same years.

The Indictment alleges that, as the Controller/Chief Financial Officer of the care facility, Shull was legally obligated to withhold payroll taxes from wages paid to the company’s employees and was responsible to pay over these taxes to the IRS.  The Indictment also alleges that Shull was required to pay over the care facility’s contributions for Social Security and Medicare in amounts matching the amounts withheld from its employees’ pay for those purposes.

Shull was also required to file, following the end of each calendar quarter, an Employer’s Quarterly Federal Income Tax Return (Form 941), setting forth the total amount of wages and other compensation subject to withholding, the total amount of income tax withheld, and the total amount of Social Security and Medicare taxes due to the IRS. The Indictment alleges that from 2005 through 2017, Shull caused the care facility to pay wages to its employees. The Indictment further alleges that during this same period, Shull also caused the care facility to withhold trust fund taxes from those wages and to issue Wage and Tax Statements (Form W-2) to the employees indicating that trust fund taxes had been withheld from those wages and implying that those trust fund taxes had been paid over to the IRS.

The Indictment alleges that beginning in or about 2013 through in or about 2017, this was a false representation, as the withheld tax amounts were not paid over to the IRS, neither were the care facility’s employer contributions paid over during this time period. According to the Indictment, Shull caused some amounts to be paid to the IRS in 2013 and 2014, but this was insufficient to cover tax debts and penalties.

The Indictment further alleges that from 2013 through 2017, Shull caused the care facility to file only one Form 941, for the second quarter of 2013, despite the fact that during this period, the care facility had approximately 53-67 employees.

 If convicted, the defendant faces a maximum possible sentence of 30 years in prison and a $1,500,000 fine. The defendant may also be responsible for the taxes due, in addition to the payment of penalties to the Internal Revenue Service.

The case was investigated by the Internal Revenue Service, and is being prosecuted by Assistant United States Attorney Angella Middleton.

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