Owner of Two Construction Companies in Kansas Admits to Engaging in an Employment Tax Scheme

A woman from Kansas pled guilty today to wilfully not reporting and paying over payroll taxes to the IRS.
Sheryl Clanton of Bucyrus, Kansas, owned and operated McCorkendale building Inc., which specialized in the building and maintenance of subsurface infrastructure, according to court documents and allegations made in court.

Clanton oversaw the submission of quarterly employment tax forms and the payment to the Internal Revenue Service of federal income and Social Security and Medicare taxes deducted from employee earnings during his tenure as President of McCorkendale, which lasted from 2006 until 2011. Clanton owes the Internal Revenue Service almost $980,536 in employment taxes for the period beginning in the first quarter of 2010 and ending in the fourth quarter of 2011.

Due to unpaid taxes and a foreclosure on the company’s mortgage, Clanton left McCorkendale in 2011 and founded McClan Construction LLC. Clanton did not remit about $1.1 million in employment taxes or file payroll tax returns between the second quarter of 2012 and the fourth quarter of 2017.

In addition to his two existing companies, in late 2011 Clanton formed a third underground construction firm called NJ Trenching LLC. Clanton failed to report and remit to the IRS on behalf of NJ Trenching almost $100,000 in employment taxes due between 2012 and 2015.

The Internal Revenue Service lost more than $2.2 million in tax revenue due to Clanton’s actions.
On December 14, Clanton will be sentenced to a maximum of five years in jail. A period of supervised release, reparations, and fines may also be imposed on her. A federal district court judge will decide on a sentence after taking into account statutory criteria and the U.S. Sentencing Guidelines.

Acting The news was announced by Stuart M. Goldberg, Deputy Assistant Attorney General of the Tax Division at the Department of Justice.
The IRS’s Criminal Investigation division is looking into the situation.
Prosecutors from the Tax Division of the Department of Justice are Robert Kemins and Dominick Giovanniello.

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