A local dentist and his wife were recently indicted on federal tax crimes.
William Thorner, DMD, and Kathy Thorner, both of Ashland faced a multiple-count federal indictment on Sept. 16 charging the couple with failure to truthfully account for and pay over Social Security taxes, subscribing to false returns and conspiracy to defraud the United States by impeding and impairing the IRS from 2014-17, according to an IRS press release.
Dr. William Thorner, 56, owned and operated Caring Dentistry on Carter Avenue in Ashland. Kathy Thorner was the office manager and bookkeeper.
According to the indictment, Kathy Thorner caused Caring Dentistry to make thousands of dollars of expenditures for her own personal benefit as well as her husband and other designees while simultaneously failing to fork over $93,767.86 in payroll taxes withheld from Caring’s employees’ paychecks to the IRS.
According to Bryant Jackson, Special Agent in Charge of the IRS Criminal Investigation Cincinnati Field Office, Kathy Horner is alleged to have used hundreds of thousands of dollars from Caring Dentistry on personal vacations, jewelry, gifts and personal credit card expenses between 2014 and 2017.
According to the indictment, the Thorners conspired to defraud the United States by blocking the IRS from computing, assessing and collecting payroll and income taxes. Between 2013 and 2017, the Thorners spent $900,000-plus on personal expenses from the Caring Dentistry business account while only paying portions of the payroll taxes, all to the benefit of the couple or their designees, according to the indictment. It also alleges the Thorners “significantly understated” their income and “significantly overstated” federal withholdings related to Caring Dentistry on 1040 forms from 2013 to 2017.
“Employers have a responsibility to their employees to withhold the proper amount of taxes and pay those taxes over to the IRS,” Jackson said. “When employers fail to do so, it affects revenue to the United States government, but more importantly, it affects their employees’ Medicare and Social Security benefits.”
An indictment is only a charge and does not necessarily indicate guilt. A defendant is entitled to a fair trial. If convicted, the Thorners’ sentence will be determined after review of factors unique to this case, according to the press release. The U.S. Attorney’s Office for the Eastern District of Kentucky is prosecuting this case.
Back in March 2017, Dr. Thorner was facing 12 counts of theft by failure to make required disposition of property.
The case — which alleged Thorner had collected payroll tax from 12 employees at his office, but kept the money instead of turning it over to the City of Ashland — was dismissed after Thorner paid the $29,415.77 owed at the time.
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