UNCASVILLE, Conn., (WTNH)– Uncasville woman pleaded guilty to one count of tax evasion on Wednesday, Sept. 16.
According to court documents, 58-year-old Kathryn Pocock has been operating a home cleaning business since 1991. Between 2015 and 2019, Pocock withdrew $855,000 from her business and didn’t report those proceeds on the tax forms for the business and on her federal income tax returns.
During the investigation, it was revealed that Pocock would cash numerous client checks that had been paid to her business, deposit some of the checks into her personal bank account, and paid her employees “under the table.”
Court documents showed that Pocock wrote checks payable to cash from her personal and business accounts, and paid employees with cash without properly collecting and paying over employment tax to the IRS or sale, and use taxes owed to the state of Connecticut.
The investigation also showed 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.
Pocock is scheduled to start her sentence on Dec. 8. 2021, where she is facing the maximum term of five fives.