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Cogan Station man admits to paying employees cash to avoid federal taxes

Courtroom gavel

A Cogan Station business owner is facing jail time after admitting he paid employees cash to avoid federal taxes.

J. Michael Barr, 59, pleaded guilty Tuesday in U.S. Middle District Court to a charge of failure to pay taxes, according to PennLive.com.

Both prosecuting and defense attorneys estimate he will receive a sentence in the range of one to two years.

The plea deal also requires the former owner of Barr Construction to make full restitution, though the amount Barr owes still is in dispute.

The exact amount is expected to be determined at a hearing that has not yet been scheduled, according to PennLive.com.

Barr remains free on personal recognizance pending sentencing.

Under the plea agreement, Barr admits that from late October of 2017 to late December of 2020, he paid employees about $615,000 in cash without accounting for and paying to the Internal Revenue Service federal income and related taxes, PennLive.com reported.

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