CINCINNATI – An eastern Indiana business woman pleaded guilty Thursday to one count of willfully failing to pay more than $350,000 in employment taxes to the Internal Revenue Service (IRS).
Peggy Dossman, 42, of Lawrenceburg, Indiana faces a maximum of five years in prison and a fine of up to $250,000.
According to court documents, between 2003 and 2010 Dossman was a partner at Southwest Home Healthcare, a home health care business.
During the 2008 and 2009 income tax years, Dossman and her partner Gina Kerth, 45, deducted and collected income taxes and Federal Insurance Contributions Act (FICA) taxes from the wages of the employees of Southwest Home Healthcare, but failed to remit those funds to the IRS, the office of U.S. Attorney Carter M. Stewart wrote in a release.
Dossman agreed to pay restitution to the IRS in the amount of $352,472.77 for the tax money not remitted to the IRS for the first and second quarters of 2008 and for all four quarters of 2009. She will also pay restitution to the State of Ohio in the amount of $6,573.14.
Dossman was released on bond, pending sentencing, on a date to be determined by Senior U.S. District Judge Susan J. Dlott, who presided over the court on Thursday.
On May 13, 2014, Kerth, a partner in Southwest Home Healthcare, pleaded guilty to one count of willfully failing to pay over employment taxes to the IRS.
Kerth, a Harrison, Ohio resident, was released on bond. A sentencing date is set for Sept. 10, 2014.
"IRS Criminal Investigation realizes the detrimental consequences of employment tax evasion. It results in the loss of tax revenue to the United States government and the loss of future social security or Medicare benefits for the employees," stated Kathy A. Enstrom, Special Agent in Charge.
This case was prosecuted by Assistant United States Attorney Timothy S. Mangan and was investigated by special agents of IRS-Criminal Investigation and the U.S. Department of Labor.