A Hillsborough man who is the CEO of a large payroll service company was sentenced Wednesday to 27 months in prison for trying to evade almost $477,000 in tax payments.
Jerry Carter Jr., 33, had previously pleaded guilty to tax evasion, admitting that for three years from 2007 to 2009 he failed to provide the IRS with complete and correct information regarding income that he received in connection with his position as CEO and owner of First Priority Pay in Hoboken.
Information from the Department of Justice shows Carter attempted to evade paying taxes on income of more than $1.8 million during that time, a tax loss to the United States of about $476,832.
Carter was reportedly well-known in the business world, named one of the top young business people in New Jersey by a state publication. First Priority Pay, which was once highly thought of, went out of business after a pair of employees were found to have embezzled almost $600,000 from clients.
In addition to the 27-month prison term, Carter was sentenced to serve three years of supervised release, during which he will be barred from working in the payroll industry. He has also agreed to pay $833,586 to the IRS, representing taxes and penalties.
U.S. Attorney Paul J. Fishman credited special agents of IRS–Criminal Investigation, under the direction of Acting Special Agent in Charge JoAnn S. Zuniga, with the investigation.