Former BK Racing owner Ron Devine agrees to plea deal in federal payroll tax case

Former NASCAR team owner Ron Devine has agreed to a plea deal in the Western District of North Carolina federal court case, in which he was charged with four counts of failure to pay payroll taxes.

According to Bob Pockrass of FOX Sports, “Devine did willfully fail to pay over to the Internal Revenue Service $176,144.88 in trust fund taxes due and owing to the IRS on behalf of BK Racing for the quarter ending June 30, 2017.”

Devine’s court date is set for Jan. 6, 2025.

Details on former BK Racing owner Ron Devine’s federal court case

Devine was formerly the primary owner of BK Racing, which ran a Cup Series entry from 2012-18. Three days before the 2018 Daytona 500, Devine filed chapter 11 bankruptcy in light of a bank claiming he owed $8 million in outstanding loans. After filing for bankruptcy, Devine sold BK Racing’s charter and assets to Front Row Motorsports for $2.08 million.

Devine was indicted in October 2023.

“The indictment alleges that, starting in 2012, Devine caused BK Racing to fail to account for and pay over hundreds of thousands of dollars in payroll taxes,” the United States Attorney’s Office said in a release last year. “For example, according to the indictment, in 2017, Devine allegedly failed to pay over more than $390,000 in payroll taxes due to the IRS.

“The indictment further alleges that, between 2012 and 2017, instead of using the funds held in trust to pay for payroll taxes due, Devine transferred more than $2 million to other businesses and entities that he owned and controlled and used some of the funds to pay for BK Racing’s expenses such as rent, utilities, and vendor bills.”

The charge carries a maximum penalty of five years in prison and a $250,000 fine for each of the four counts in the indictment.