Butler, PA Business Owner Pleads Guilty to Payroll Tax Violations—Why Waiting Can Cost You Everything
When news broke that a Butler, Pennsylvania resident pleaded guilty to failing to pay over payroll taxes, many business owners felt a chill run down their spine. It’s the kind of story that feels distant—until you realize how easily a small cash-flow problem can snowball into something much bigger. The case of 49-year-old Michael D. Funovits is a reminder of how quickly payroll tax issues can turn serious if they aren’t handled early and correctly. Federal prosecutors explained that, between 2016 and 2023, the owner of PennRo Associates LLC and Penn Exteriors LLC withheld payroll taxes from his employees’ paychecks but never sent those trust fund taxes to the IRS. These funds don’t belong to the business—they belong to the employees—and the IRS treats them with the highest level of seriousness. Now, Funovits faces up to five years in prison and as much as $250,000 in fines, with sentencing scheduled for February 17, 2026.
Why This Case Should Matter to Every Business Owner
Stories like this are more common than people realize. When a business hits a rough patch, some owners convince themselves that “borrowing” payroll tax money is a temporary solution. They tell themselves they’ll catch up next month. But the IRS doesn’t see it that way. To the government, failing to pay trust fund taxes is the same as taking money from your employees’ pockets. Not every payroll tax issue becomes a criminal case, but ignoring the problem allows penalties, interest, liens, and aggressive enforcement actions to pile up. By the time the IRS becomes involved, options can start to disappear.
The Real Lesson: Early Action Is Everything
If you're behind on payroll taxes—or any tax obligation—the worst thing you can do is hope it goes away. Time is the enemy in IRS matters. The longer the debt lingers, the more dangerous it becomes. There are legal, compliant ways to address payroll tax problems before they spiral out of control. Business owners can often pursue installment plans, penalty relief, or structured compliance strategies, but these options are only available to those who take the first step and acknowledge the problem.
You Don’t Have to Face Payroll Tax Issues Alone
At Trifecta Tax Relief, we help business owners address payroll tax problems with the care and strategy these situations demand. We understand how overwhelming it feels to receive notices or fall behind during a tough year. Our role is to bring clarity to the situation, protect your rights, and guide you toward a resolution that restores peace of mind.
We work to:
• Communicate directly with the IRS on your behalf
• Analyze every possible resolution strategy
• Bring you back into compliance, even if you’re years behind
• Help you avoid costly missteps that could escalate your case
When payroll tax problems start keeping you up at night, that’s the moment to take action—not after the IRS has already closed in. The sooner you reach out, the more options you have.
If you’re facing payroll tax debt, IRS notices, or growing fear about what might happen next, Trifecta Tax Relief is ready to help you regain control.
Contact Trifecta Tax Relief today to schedule a confidential consultation and begin your path back to stability and peace of mind.
Trifecta Tax Relief — One of the Nation’s Best in Investigative and Compliant Tax Relief.
803-373-5507