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News Release

Salem Restaurant Owner Pleads Guilty To Three Counts Of Tax Evasion - 03/24/26

Salem, OR—The Oregon Department of Revenue (DOR) announced today that the Oregon Department of Justice has secured a guilty plea by a Salem restaurant owner on three counts of tax evasion, each a class C felony, on February 19, 2026 in the Marion County Circuit Court.

 

While April 15 is well known across the country as “Tax Day,” the majority of taxpayers make their tax payments through withholding taken out of each paycheck throughout the year by their employer and paid to the IRS and DOR. This is how most Oregonians pay into our shared services. They trust that the money taken out of each paycheck goes towards funding public safety, public education, programs that care for Oregonians who need extra support, our beloved parks, and more.

 

The DOR works hard to ensure exactly that happens. So when a local businessowner, defendant Michael Richard Pfohl of Salem, Oregon, failed to file quarterly tax reports and  remit employee contributions, and refused to work with the DOR to pay down his delinquent debts, he was charged with 10 counts of tax evasion.

 

The plea agreement includes a sentence of supervised probation for 48 months, 80 hours of community service, and a criminal fine of $6,000. The defendant also served three days of jail starting February 20, 2026, the day after the court judgment.

 

“The plea agreement indicates that the defendant, Michael Richard Pfohl, must cooperate with DOR to pay outstanding debt owed to the state,” said Deborah Love-Wagner, DOR’s acting Collection Division administrator. “The plea deal lays out the defendant’s multiple failures to pay taxes that support the state and the essential services supporting our residents.

 

“Bringing tax delinquency issues to the courts may be a necessary step for some taxpayers who do not take steps available to resolve their debt with our department. The Oregon Department of Justice’s actions in partnership with DOR helped the state ensure our tax system works fairly when other pathways available to taxpayers are ignored. Businesses and workers can feel confident that our tax system is fair for everyone whose taxes pay for our roads, schools, housing, and community health.”

 

In addition, the defendant was ordered to pay $90,232 in restitution as a condition for his plea agreement, representing all tax obligations included in the indictment.

 

DOR works with taxpayers out of compliance

 

Jail time for state tax evasion is not commonplace. That is because the DOR considers individuals and businesses to be in compliance with Oregon tax laws if they are making a good faith effort to work with the department to pay what they owe and have filed all tax reports or returns that are required by law.

 

The department regularly works with individuals or businesses to resolve tax issues and tax debt. Taxpayers out of compliance may have missing tax returns that are required to be filed or may have an outstanding balance that remains unpaid and do not have a department-approved payment plan in place.

 

For each of the three guilty pleas for tax evasion, Mr. Pfohl failed to file quarterly tax reports. Mr. Pfohl admits in his plea to not filing tax reports, required by employers in remitting payroll taxes to Oregon, for the first quarter of 2021, the first quarter of 2022, and the first quarter of 2023.

 

DOR recognizes many taxpayers may have legitimate issues preventing them from fulfilling their tax obligations. DOR offers payment plans up to 36 months. Visit Revenue Online to set up a payment plan. Taxpayers who may be out of compliance should contact the DOR by phone at 503-378-4988 or 800-356-4222, or by email at questions.dor@dor.oregon.gov.

 

Oregon’s tax system relies on taxpayers voluntarily filing returns and paying what they owe. Compliance efforts, such as audits, filing enforcement, and collection activity are essential tools to ensure Oregon receives revenue the state counts on to fund services for Oregonians. DOR will take enforcement actions for non-compliance to ensure state tax laws are administered fairly for all Oregonians.

 

DOR provides a tip line for the public to share suspected fraudulent activities. Those who suspect an employer is refusing to withhold taxes from a paycheck can report the issue as tax fraud to us online or by calling 503-945-8264. Tipsters can remain anonymous.

Salem Restaurant Owner Pleads Guilty To Three Counts Of Tax Evasion - 03/24/26

Salem, OR—The Oregon Department of Revenue (DOR) announced today that the Oregon Department of Justice has secured a guilty plea by a Salem restaurant owner on three counts of tax evasion, each a class C felony, on February 19, 2026 in the Marion County Circuit Court.

 

While April 15 is well known across the country as “Tax Day,” the majority of taxpayers make their tax payments through withholding taken out of each paycheck throughout the year by their employer and paid to the IRS and DOR. This is how most Oregonians pay into our shared services. They trust that the money taken out of each paycheck goes towards funding public safety, public education, programs that care for Oregonians who need extra support, our beloved parks, and more.

 

The DOR works hard to ensure exactly that happens. So when a local businessowner, defendant Michael Richard Pfohl of Salem, Oregon, failed to file quarterly tax reports and  remit employee contributions, and refused to work with the DOR to pay down his delinquent debts, he was charged with 10 counts of tax evasion.

 

The plea agreement includes a sentence of supervised probation for 48 months, 80 hours of community service, and a criminal fine of $6,000. The defendant also served three days of jail starting February 20, 2026, the day after the court judgment.

 

“The plea agreement indicates that the defendant, Michael Richard Pfohl, must cooperate with DOR to pay outstanding debt owed to the state,” said Deborah Love-Wagner, DOR’s acting Collection Division administrator. “The plea deal lays out the defendant’s multiple failures to pay taxes that support the state and the essential services supporting our residents.

 

“Bringing tax delinquency issues to the courts may be a necessary step for some taxpayers who do not take steps available to resolve their debt with our department. The Oregon Department of Justice’s actions in partnership with DOR helped the state ensure our tax system works fairly when other pathways available to taxpayers are ignored. Businesses and workers can feel confident that our tax system is fair for everyone whose taxes pay for our roads, schools, housing, and community health.”

 

In addition, the defendant was ordered to pay $90,232 in restitution as a condition for his plea agreement, representing all tax obligations included in the indictment.

 

DOR works with taxpayers out of compliance

 

Jail time for state tax evasion is not commonplace. That is because the DOR considers individuals and businesses to be in compliance with Oregon tax laws if they are making a good faith effort to work with the department to pay what they owe and have filed all tax reports or returns that are required by law.

 

The department regularly works with individuals or businesses to resolve tax issues and tax debt. Taxpayers out of compliance may have missing tax returns that are required to be filed or may have an outstanding balance that remains unpaid and do not have a department-approved payment plan in place.

 

For each of the three guilty pleas for tax evasion, Mr. Pfohl failed to file quarterly tax reports. Mr. Pfohl admits in his plea to not filing tax reports, required by employers in remitting payroll taxes to Oregon, for the first quarter of 2021, the first quarter of 2022, and the first quarter of 2023.

 

DOR recognizes many taxpayers may have legitimate issues preventing them from fulfilling their tax obligations. DOR offers payment plans up to 36 months. Visit Revenue Online to set up a payment plan. Taxpayers who may be out of compliance should contact the DOR by phone at 503-378-4988 or 800-356-4222, or by email at questions.dor@dor.oregon.gov.

 

Oregon’s tax system relies on taxpayers voluntarily filing returns and paying what they owe. Compliance efforts, such as audits, filing enforcement, and collection activity are essential tools to ensure Oregon receives revenue the state counts on to fund services for Oregonians. DOR will take enforcement actions for non-compliance to ensure state tax laws are administered fairly for all Oregonians.

 

DOR provides a tip line for the public to share suspected fraudulent activities. Those who suspect an employer is refusing to withhold taxes from a paycheck can report the issue as tax fraud to us online or by calling 503-945-8264. Tipsters can remain anonymous.