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Local Business Owners Plead Guilty To Skipping Employment Taxes

Posted On June 20, 2014

By Mike Perleberg

(Cincinnati, Oh.) –  A Lawrenceburg woman is pleading guilty in federal court for failing to pay more than $350,000 in employment taxes to the Internal Revenue Service.

Federal prosecutors announced the guilty plea Thursday concerning Peggy Dossman, 42, in U.S. District Court for Southern Ohio.

Dossman will be sentenced to up to five years in prison and a fine of $250,000.

According to court documents, between 2003 and 2010 Dossman was a partner in a Harrison-based home health care business known as Southwest Home Healthcare.  During the 2008 and 2009 income tax years, Dossman and her partner, Gina Kerth, 45, of Harrison, deducted and collected income taxes and FICA taxes from the wages of their employees, but failed to remit those employment taxes to the IRS.

A release from U.S. Attorney Carter M. Stewart said Dossman agreed to pay restitution to the IRS in the amount of $352,472.77 for the employment taxes not remitted to the IRS for the first and second quarters of 2008 and for all four quarters of 2009.  In addition, Dossman agreed to 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 Judge Dlott.

Kerth pleaded guilty May 13 to one count of willfully failing to pay over employment taxes to the IRS.  Kerth was released on bond and a sentencing date was set for September 10.

“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, IRS Criminal Investigation, Cincinnati Field Office.

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