Kouts Business Owner Indicted

Photo courtesy of Kouts Health Care Inc

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A northwest Indiana woman has been indicted for allegedly failing to submit payroll taxes at her two Porter County health care clinics between 1999 and 2015. The U.S. Department of Justice says Kathy Lynch withheld payroll from her employees’ paychecks but failed to submit over $500,000 of the withheld taxes to the Internal Revenue Service.

Lynch was indicted on nine counts of willful failure to pay federal payroll taxes. The alleged activity took place at Lynch’s businesses, Kouts Health Care Inc. and Kouts Family Health Care Inc.

The indictment alleges that Lynch used her company’s bank account to pay personal expenses such as mortgage and car payments, while failing to pay her federal payroll tax obligations.

“This indictment should send a strong message to those attempting to cheat the tax system.  We always will partner with the IRS to focus on egregious tax violations in this District,” said U.S. Attorney Kirsch.

This case is being investigated by the Internal Revenue Service Criminal Investigation Division.  This case is being prosecuted by Assistant United States Attorney Abizer Zanzi.