Shakopee Business Owner to Serve Probation for Failing to Pay Taxes

Published On: 20th September 2012

From the Internet news:

Many individuals and businesses that have difficulty paying taxes have ways to work with the IRS or utilize legal means to find a resolution.

In the case of Stephen Paul Clough, the former owner of Gamma Vacuum, he received a sentence in federal court of $25,000 in fines, three years of probation, and four months of community confinement for failure to pay income tax to the IRS in an amount over $900,000.

After being charged on April 27, Clough entered a guilty plea on May 7 and was sentenced on September 10.

According to the U.S. Attorney’s Office, Clough failed to pay income tax to the IRS between 2003 and 2010. He also failed to pay employment taxes that were withheld from the wages of his employees. Clough was the only individual who took care of the bookkeeping for Gamma Vacuum, including the payment of payroll taxes and other types of withholding from employee paychecks. Instead of paying the payments, he used the money to pay business expenses.

Cloughs actions resulted in the IRS losing a total of $944,134.29 in taxes.

The investigation was conducted by the IRS Criminal Investigation Division. The prosecutor in the case was Assistant U.S. Attorney William J. Otteson.