HAMMOND- Kathy L. Lynch, age 61, of Kouts, Indiana, was indicted on nine counts of willful failure to pay federal payroll taxes, announced U.S. Attorney Kirsch.
The Indictment alleged that Lynch has owned and operated two health care clinics, Kouts Health Care, Inc. and its predecessor company Kouts Family Health Care, Inc. since January 1999. As alleged in the Indictment, between January 1999 and September 2015, Lynch withheld payroll taxes (i.e., federal income taxes and Medicare and Social Security contribution taxes) from her employees’ paychecks but failed to submit over $500,000 of the withheld taxes to the Internal Revenue Service. During this time, the Indictment alleges that Lynch used her company’s bank account to pay personal expenses such as mortgage and car payments, while failing to pay her federal payroll tax obligations.
U.S. Attorney Kirsch said, “This indictment should send a strong message to those attempting to cheat the tax system. We always will partner with the IRS to focus on egregious tax violations in this District."
“The failure to pay over withheld taxes from their employees is a serious allegation. IRS Criminal Investigation will continue to track down those who collect these taxes and use the funds for personal gain," said Special Agent in Charge Tara Sullivan of the Chicago Field Office."
The United States Attorney’s Office emphasizes that an Indictment is merely an allegation and that all persons are presumed innocent until, and unless proven guilty in court.
If convicted, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
This case is being investigated by the Internal Revenue Service Criminal Investigation Division. This case is being prosecuted by Assistant United States Attorney Abizer Zanzi.
Source: U.S. Department of Justice, Office of the United States Attorneys
