New Jersey physician pleads guilty in $1.5M tax case

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Brian Mehling, MD, 61, an orthopedic surgeon from Hackensack, N.J., pleaded guilty to failing to pay more than $1.5 million in payroll taxes withheld from employees’ paychecks. 

Dr. Mehling formed Mehling Office Management to pay himself and employees of his medical practice. He failed to remit the full amount of withheld payroll taxes to the IRS during 10 quarters between 2014 and 2018, according to a Nov. 10 Justice Department news release.

During an October 2016 interview with an IRS revenue officer, Dr. Mehling admitted he was responsible for paying the company’s payroll taxes and had instead used funds to cover other expenses, including mortgages on his properties. The missed payments continued in 2017 and 2018, after that interview, the release said.

As part of his plea agreement, Dr. Mehling agreed to pay $1,526,281 in restitution to the IRS.

He pleaded guilty to one count of failing to collect, account for and pay over payroll taxes. He faces a maximum sentence of five years in prison, with sentencing scheduled for March 16.

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