Greensboro Reporter

A Concord, North Carolina man has pleaded guilty to willfully failing to collect or pay over taxes, announced Sandra J. Hairston, United States Attorney for the Middle District of North Carolina (USAO-MDNC).

According to court documents, from the first quarter of 2016 up to and including the third quarter of 2022, Ronald James McMurphy of Concord was the president of McMurphy Hydraulics, Inc., which was in the business of repairing and manufacturing hydraulics equipment. From the fourth quarter of 2019 up to and including the third quarter of 2022, McMurphy also served as president of Powertek Equipment, Inc., a manufacturer of heavy equipment for construction and forestry businesses.

McMurphy exercised control over the financial affairs of both companies by serving as president, exercising authority to hire and fire employees, and having signatory authority on checks drawn on corporate bank accounts. He was responsible for accounting for and paying employment taxes to the IRS for employees of both companies but willfully failed to do so. The total employment tax liability from the first quarter of 2016 through the third quarter of 2022 for which McMurphy is accountable is $712,017.

McMurphy pleaded guilty today before Chief United States District Court Judge Catherine C. Eagles. Sentencing is scheduled for December 12, 2024, in Greensboro. McMurphy faces a maximum sentence of five years in prison, a period of supervised release not exceeding three years, and monetary penalties.

The case is being investigated by IRS Criminal Investigation. Assistant United States Attorney Laura J. Dildine of the Middle District of North Carolina is prosecuting.

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