COLLEGE PARK, MD. — A Maryland lawyer admitted in federal court Monday to willfully failing to pay more than $2.1 million in employment taxes withheld from his law firm’s employees over a 24-year period, federal prosecutors said.
James E. McCollum Jr., an attorney licensed in both Maryland and the District of Columbia, pleaded guilty to one count of failing to pay over employment taxes. According to court records, McCollum operated a law firm under multiple names — including McCollum P.C., McCollum & Associates LLC, and The McCollum Firm LLC — but remained the sole owner and financial operator throughout.
As the firm’s proprietor since 1998, McCollum was responsible for withholding federal income taxes, as well as Social Security and Medicare contributions, from his employees’ paychecks and remitting those payments to the IRS quarterly. Prosecutors said he also failed to pay the employer’s share of Social Security and Medicare taxes, in violation of federal law.
Court filings revealed that McCollum repeatedly neglected his tax obligations from as early as 2000. Beginning in 2010, the IRS issued multiple collection notices and levies. When efforts to recover the debt from the firm failed, the agency assessed the tax liability against McCollum personally.
In 2020, McCollum transferred his business and staff to a new entity, The McCollum Firm, but continued to disregard tax filing and payment requirements, prosecutors said. He ultimately admitted to failing to pay over approximately $2,174,992.83 in employment taxes from 2000 through 2024.
Sentencing scheduled for September
McCollum also acknowledged failing to file personal tax returns and to pay $220,515 in income taxes owed for 2020 through 2022. He faces a maximum sentence of five years in prison, along with potential supervised release, restitution, and financial penalties.
Key Points
- James E. McCollum Jr. admitted to failing to pay more than $2.1 million in employment taxes from 2000–2024
- The IRS attempted collections beginning in 2010, but McCollum evaded efforts by shifting his firm to a new entity
- He also failed to pay $220,515 in personal income taxes for 2020–2022
Sentencing is set for Sept. 29 before a federal district court judge in Maryland.