PROVIDENCE, R.I. – Gail M. Hynson, 59, president of Hynson Electrical Services, Inc., has been sentenced to two years of probation, including six months under home detention, for failing to remit eight years’ worth of employee federal withholding taxes and filing false tax returns, according to the U.S. Attorney’s Office for the District of Rhode Island.
Hynson pleaded guilty in October 2024 to 10 counts of failure to account for and pay over payroll taxes and three counts of filing a false tax return. Along with probation, U.S. District Court Chief Judge John J. McConnell, Jr. also ordered Hynson to perform 100 hours of community service.
Between 2016 and 2024, Hynson, who also served as the company bookkeeper, withheld federal income taxes, Medicare, and Social Security taxes from her employees’ paychecks but failed to send these funds to the IRS. Instead, Hynson diverted a large portion of the withheld money into her personal bank accounts, using the funds for personal expenses such as her mortgage, car payments, and her daughter’s student loans.
The U.S. Attorney’s Office further confirmed that Hynson and her husband filed false tax returns, omitting significant portions of their income, including the employee withholdings she diverted for personal expenses. As a result, Hynson failed to remit approximately $1.22 million in payroll taxes to the IRS during that time.
This case serves as a reminder of the severe penalties for tax fraud, including misreporting income and withholding payroll taxes intended for the IRS.
