For ten years he withheld employee taxes but failed to pay them to IRS
Seattle – The owner of a restaurant in Seattle’s Capitol Hill neighborhood pleaded guilty today to willfully failing to pay over more than $1.4 million in unemployment, Social Security, and Medicare taxes – some of which were withheld from employee paychecks, announced First Assistant U.S. Attorney Charles Neil Floyd. Ruadhri McCormick, 44, of Seattle, owns and operates Single Shot restaurant. Between 2014 and 2024 he employed as many as 87 people as servers, bartenders, and cooks. While McCormick withheld payroll taxes from employee paychecks, he kept the money and failed to pay it over to the Internal Revenue Service. McCormick faces up to five years in prison when sentenced by U.S. District Judge Kimberly K. Evanson on October 5, 2026.
“While the restitution is owed to the IRS, those who are hurt by this conduct are the employees,” said First Assistant U.S. Attorney Neil Floyd. “The failure to pay over the taxes means the employees may not be eligible for many federal benefits that they paid for and may have been counting on. Mr. McCormick needs to make this right.”
“Mr. McCormick’s employees trusted him with their tax withholdings. Little did they know that Mr. McCormick took advantage of this trust and kept over $1 million of these funds for himself,” said Special Agent in Charge Carrie Nordyke, IRS Criminal Investigation (IRS-CI), Seattle Field Office. “Employers have an obligation to their employees to do the right thing. Today’s guilty plea is a step toward justice for those harmed by Mr. McCormick’s criminal actions.”
For thirty-six quarters between 2014 and 2024, McCormick failed to pay $1,027,362 in payroll taxes that had been withheld from employee paychecks. McCormick also failed to pay the employer portions of the Social Security taxes, Medicare taxes, and federal unemployment taxes – more than $400,000 – bringing the total tax loss to $1,446,341. McCormick agreed to pay that full amount as restitution to the Internal Revenue Service.
Additionally, McCormick admitted in his plea agreement that he did not file his personal income taxes from any tax year 2015 through 2024.
In the plea agreement prosecutors agree to recommend no more than 15 months in prison, however the recommendation is not binding on Judge Evanson, and she can impose any sentence allowed by law.
Willful failure to pay over tax is punishable by up to five years in prison and a $250,000 fine.
The case is being investigated by the Internal Revenue Service – Criminal Investigations (IRS-CI). The case is being prosecuted by Assistant United States Attorney Lauren Watts Staniar.
Contact
Press contact for the U.S. Attorney’s Office is Communications Director Emily Langlie at (206) 553-4110or Emily.Langlie@usdoj.gov.
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