Lake Charles Business Owner Faces Payroll Tax Charges
A local owner faces federal charges for $390,000 in unremitted taxes, highlighting critical compliance risks for employers.
Updated on Oct. 30, 2026 in Taxes
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Alicia Williams Higginbotham of Lake Charles has pleaded not guilty to federal charges involving $390,000 in unpaid payroll taxes. The case involves allegations that payroll taxes were withheld from employee paychecks but not paid to the government between 2020 and 2023.
Why it matters
This case highlights the strict federal requirements for employers regarding trust fund taxes, which are funds withheld from employee earnings for income, Social Security, and Medicare taxes. Failure to remit these mandatory withholdings can lead to severe criminal charges and personal liability for business owners.
The charges involve $390,000 in unpaid payroll taxes spanning 2020 to 2023, while the business owner was released on a $25,000 bond. A separate legal matter resulted in a former employee being awarded $16,000 in unpaid wages.
The players
Alicia Williams Higginbotham
The defendant and operator of 1st Abundant Home Care who faces federal charges for unpaid payroll taxes.
IRS Criminal Investigation
The federal agency tasked with investigating and enforcing compliance with tax laws, including payroll tax fraud.
1st Abundant Home Care
A Lake Charles business currently listed as not in good standing with the Louisiana Secretary of State.
The details
Employers are legally required to hold employee income, Social Security, and Medicare taxes in trust until they are paid to the IRS. Higginbotham allegedly withheld these funds from staff paychecks at 1st Abundant Home Care but failed to transfer the money to federal authorities. The legal proceedings now involve 14 counts of failing to account for trust fund taxes and four counts of failing to file individual income tax returns.
Timeline
2020-2023: Period of payroll tax delinquency.
September 2026: Alicia Williams Higginbotham was arrested.
April 5, 2027: The scheduled jury trial for the case.
Money Landscape
This case is part of a broader federal effort to recover millions in lost tax revenue through strict enforcement of payroll tax obligations. It sits within a national environment where government oversight of employer trust fund compliance has increased significantly.
Business owners must ensure that all withheld payroll taxes are remitted to the government on time to avoid federal criminal exposure and personal liability. If you operate a business, consult with a qualified tax professional to verify that your payroll procedures align with federal trust fund requirements.
The takeaway
Maintaining compliance with payroll tax laws is a fundamental responsibility that protects business owners from significant legal risks. Review your payroll records and consult with a qualified tax professional to ensure that all withheld funds are properly accounted for and submitted.
Further reading
Learn more about federal obligations for business owners in our Taxes section.
Source note: This article includes information reported by The Advocate.
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Should business owners face criminal charges for failing to pay employee payroll taxes?
