Landmark Tax Group

Nebraska Man Sentenced for Payroll Fraud

On October 21, 2013, in Lincoln, Nebraska, John Stanley Clabaugh, Jr. was sentenced to 6 months in prison, three years of supervised release of which 6 months will be served as home confinement, and ordered to pay $135,109 in restitution. Clabaugh was the owner/operator of an insurance agency located in Crete, Nebraska. He and a secretary were the only full time employees, although there have been occasional part time employees. Clabaugh always withheld the federal income taxes and FICA taxes from his and his employees’ paychecks, until 2001 when he stopped paying these withheld funds over to the IRS and stopped filing the required quarterly forms. The total ‘trust fund’ taxes withheld from employee paychecks for the period of time covered by the indictment was $135,330. (Source: IRS.gov)

More IRS Investigations

For immediate assistance with your IRS or State tax matter, contact us today at 1-714-382-6780 for a FREE and CONFIDENTIAL consultation with our CPAs and former IRS Agents. 

 As Featured In