A Cedar Rapids business owner was sentenced Tuesday to more than two years in federal prison after withholding federal taxes from his employees’ paychecks and not forwarding the money to the Internal Revenue Service.
According to the U.S. Attorney’s Office, Eric Holub, 46, and the former owner of Premier Security, received the prison term after a July 12 guilty plea to one count of failing to pay the IRS money. Holub withheld more than $400,000 from the IRS between 2008 and 2011.
Holub said in a plea agreement that from January 2008 through December 2009 he withheld income taxes and Federal Insurance Contributions Act taxes from employee paychecks but did not forward the money to the IRS for six calendar quarters.
He said he also failed to pay other taxes owed to the IRS by Premier Security from 2008 through 2011.
Holub was sentenced to 30 months’ imprisonment. A special assessment of $100 was imposed, and he was ordered to make $438,426.17 in restitution to the IRS.
He also must serve a three-year term of supervised release after the prison term.