Hailey Contractor Pleads Guilty to Tax Violations
BOISE – Garth Callaghan, 57, of Hailey, Idaho, pleaded guilty today in United States District Court in Boise to an information charging him with failure to pay over federal income tax to the Internal Revenue Service, U.S. Attorney Wendy J. Olson announced.
According to the plea agreement, Callaghan has owned and operated Garth Callaghan Construction, Inc. since 1998. Callaghan paid his employees, in part, through checks that he drew on his personal account. Callaghan admitted that he failed to collect any withholdings and trust fund taxes on these payments. He agreed to pay restitution to the Internal Revenue Service of $177,096.
The charge is punishable by up to three years in prison, a maximum fine of $250,000, and up to three years of supervised release.
Sentencing is set for July 30, 2012, before Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Boise.
The case was investigated by the Internal Revenue Service-Criminal Investigation.
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