Midland business woman pleads guilty to tax charge

MIDLAND, Texas (KOSA) -– A Midland woman has pleaded guilty to not paying federal payroll taxes.

This happened last week.

According to court records, Lydia Evaro Madrigal was the president and chief executive officer for EXN, Inc.

From 2013 through 2015, EXN withheld payroll taxes from its employees’ paychecks but did not make the required payroll tax payments to the IRS. In all, Madrigal failed to account for and pay $637,594.35 in payroll taxes withheld from EXN’s employees.

Madrigal also failed to pay the employer portion of the $249,536.35 in FICA taxes for 2013 through 2015. Instead, Madrigal used the money for her own personal benefit.

As of today, Madrigal has voluntarily paid losses to the IRS in full. Madrigal pleaded guilty to one count of willful failure to collect and pay overtax.

She is scheduled to be sentenced at a later date and faces a maximum penalty of five years in prison.