Ohio woman sentenced for not paying employment taxes

Date: Nov. 9, 2026

Contact: newsroom@ci.irs.gov

Akron, OH – An Akron woman was sentenced for issuing payments to herself, using funds withheld from paychecks, instead of making required quarterly employment tax payments.

Brenna Butdorf of Wooster has been sentenced to 18 months in prison, followed by three years of supervised release, after pleading guilty to Failing to Truthfully Account for and Pay Over Trust Fund Taxes. She was also ordered to pay a $55,000 fine, $198,448.75 in restitution to the IRS, and an additional $147,992.50 to another victim as a condition of her supervised release.

According to court documents, Butdorf managed the finances of an electrical contracting company that her husband owned and that was based out of their home. Federal law requires such companies to withhold social security, Medicare, and federal income taxes from employees’ paychecks and then remit them to the United States.

In her role as accountant and office manager for her husband’s business, Butdorf withheld these taxes from the company’s employees. Instead of remitting the funds to the IRS, however, Butdorf issued payments to herself and her husband, which were funded by the unremitted employment tax withholdings. Butdorf then spent these proceeds on herself and her family, including purchasing a condominium in Florida, and paying dues for a private camp, shooting club, and vacations.

In total, investigators discovered that from 2015 to 2021, Butdorf failed to pay more than $494,000 in employment taxes to the government.

The investigation was conducted by the IRS-Criminal Investigation Division’s Cleveland office.

Assistant United States Attorney Megan R. Miller led the prosecution for the Northern District of Ohio.

On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division. The Fraud Division is laser-focused on investigating and prosecuting those who commit fraud against the American people. The Department’s work to combat fraud supports President Trump’s Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs.

IRS-CI is the law enforcement arm of the IRS, responsible for conducting financial crime investigations, including tax fraud, narcotics trafficking, money laundering, public corruption, healthcare fraud, identity theft and more. It is the only federal law enforcement agency with investigative jurisdiction over violations of the Internal Revenue Code. IRS-CI has 16 field offices located across the U.S. and maintains an international presence through attaché posts abroad.