2 men sentenced after failure to pay $6 million in taxes

TEXARKANA, AR (KSLA) - Two men will spend three years in federal prison after they failed to pay nearly $6 million to the Internal Revenue Service.

James Cheek, 68, of Waleska, Georgia and Herschel Breig, 69, Nixa, Missouri pleaded guilty to failure to collect or pay over tax back in September 2016.

Both men are sentenced to 36 months followed by 3 years of supervised release.

Cheek and Breig were responsible for collecting and paying over the Hope Medical Park Hospital's payroll taxes to the IRS during the calendar years of 2009, 2010, 2011, 2012, according to authorities.

The pair failed to pay around $6 million in payroll taxes.

"Corporate executives have a responsibility to withhold federal income taxes for their employees and then remit those taxes to the IRS on their behalf," said Tracey D. Montano, special agent in charge. "Employment tax evasion not only results in the loss of tax revenue to the United States government; employees also lose future social security or Medicare benefits."

This case was investigated by the IRS, Criminal Investigation Division and the Federal Bureau of Investigation.

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