UNCASVILLE, Conn. (WTIC Radio)—An Uncasville business owner pleads guilty to tax evasion on Wednesday.
According to federal prosecutors, between 2015 and 2019, Kathryn Pocock, 58, of Uncasville, withdrew approximately $855,000 from her Sunshine Cleaners, LLC, home cleaning business and failed to report those proceeds on the relevant tax forms for the business and on her federal income tax returns.
The investigation revealed that Pocock regularly cashed numerous client checks that had been paid to her business, deposited some checks into her personal bank account, and paid her employees “under the table.”
Pocock wrote checks payable to cash from her personal and business bank accounts, and paid employees in cash without properly collecting and paying over employment tax to the IRS or sales and use taxes owed to the State of Connecticut, investigators said.
The investigation also revealed that Pocock provided her tax preparer with false spreadsheets and supporting documentation that significantly understated her income and employee-related expenses.
Pocock has agreed to pay $213,965 in restitution to the IRS and $33,514 to the State of Connecticut.
She is released, pending sentencing. Pocock faces a sentence up to 5 years, maximum.