Owner of Sumiton Medical Clinic Sentenced Two Years for Tax Fraud
BIRMINGHAM – A federal judge today sentenced an owner and corporate officer of a Sumiton medical clinic to two years in prison for tax fraud totaling more than $340,000, U.S. Attorney Joyce White Vance and IRS Criminal Investigation Special Agent in Charge Reginael D. McDaniel announced.
U.S. District Judge Inge P. Johnson sentenced CAROL LYNN TWILLEY, 43, of Dora, on six counts of tax fraud, to which she pleaded guilty in April. Judge Johnson also ordered Twilley to pay $340,542 in restitution to the Internal Revenue Service. Twilley is scheduled to report to prison Oct. 18.
Twilley managed and partially owned Horse Creek Family Medicine from 2003 to 2005. During that time, the clinic withheld Social Security and Medicare taxes from its employees but did not file quarterly returns, pay over the collected taxes, or pay its own share of such federal taxes.
Twilley’s conduct resulted in the clinic’s failure to account for and pay about $235,503 that was withheld from clinic employees from the second quarter of 2003 through the fourth quarter of 2005. Twilley’s conduct further resulted in the clinic’s failure to make matching payroll tax payments of about $105,038, during that same period.
Both the taxes withheld from an employee’s wages and the employer’s share of such taxes are required by federal law to be reported and paid to the IRS on a quarterly basis. Federal law holds criminally liable those individuals responsible for a business’ failure to accurately report and pay over withholding taxes to the IRS.
“By not paying these taxes, Twilley stole more than $340,000 from taxpayers,” Vance said. “Individuals who choose to ignore the tax laws for their own personal gain undermine the tax system and shift the burden of supporting the government to law-abiding citizens.”
“The IRS realizes the detrimental consequences of employment tax evasion,” McDaniel said. “Not only does it result in the loss of tax revenue to the United States Treasury, it can negatively impact future Social Security or Medicare benefits to the employees of a company. IRS Criminal Investigation is committed to prosecuting those who would intentionally defraud America’s tax system.”
The IRS investigated the case. Assistant U.S. Attorneys Lloyd Peeples and Elizabeth Holt prosecuted the case.
If you believe your organization has expertise or resources that could improve outcomes for ex-offenders re-entering society, please e-mail our Community Outreach Coordinator at Jeremy.Sherer@usdoj.gov
or call 205-244-2019.
The Office of U.S. Attorney
Joyce White Vance
Natural Disaster Fraud Hotline
Members of the public can report fraud, waste, abuse or allegations of mismanagement involving disaster relief operations through the Hotline, toll free, at (866) 720-5721 or the Disaster Fraud e-mail at email@example.com. Please see the News Release Justice Department Officials Raise Awareness of Disaster Fraud Hotline