A Butler, Pennsylvania resident has pleaded guilty in federal court to charges related to failing to pay payroll taxes. Acting United States Attorney Troy Rivetti announced that Michael D. Funovits, 49, admitted guilt to four counts of willful failure to collect or pay over tax before United States District Judge William S. Stickman IV.
According to information presented in court, Funovits did not pay payroll taxes he collected from employees of his businesses, PennRo Associates LLC and Penn Exteriors LLC, between 2016 and 2023. The unpaid taxes were owed to the Internal Revenue Service.
Sentencing is scheduled for February 17, 2026. The statutory maximum penalty for the offenses includes up to five years in prison and a fine of up to $250,000 per count. The actual sentence will be determined based on the seriousness of the crimes and any prior criminal record.
“Assistant United States Attorney Gregory C. Melucci is prosecuting this case on behalf of the government.”
The investigation was conducted by the Internal Revenue Service-Criminal Investigation division.
