Related Federal Cases
Penny Lane Witt’s Scheme to Evade Taxes Exposed
A woman from Oxford Junction, Iowa, has been brought to justice after a long-running scheme to evade taxes was uncovered. Penny Lane Witt, a 48-year-old resident of Oxford Junction, was sentenced to 18 months in prison for tax evasion on September 27, 2022.
According to court documents, Witt operated two businesses under the names Ultimate Tree Service and Spruces Tree Service. The scheme began in 2015 when an employee of the business approached an individual in Iowa City about trimming some trees. However, the services soon expanded to include multiple remodeling and landscaping projects, with the individual paying by check for the work.
Witt, however, failed to keep business records and conducted all transactions in cash, including payroll expenses. As a result, she evaded and attempted to evade the assessment of federal income tax. The payments from the individual, which included work not fully completed, totaled approximately $469,000 in 2016 and 2017 alone.
Witt admitted to knowing her legal duty to file tax returns for those years but chose not to do so. Her actions were described as ‘taking advantage of a vulnerable person and cheating them out of hundreds of thousands of dollars’ by Acting Special Agent in Charge Charles Miller of the IRS Criminal Investigation.
The investigation into Witt’s crimes was led by the Internal Revenue Service-Criminal Investigations Division and the Iowa City Police Department. U.S. Attorney Richard D. Westphal of the Southern District of Iowa made the announcement.
Penny Lane Witt was ordered to serve three years on supervised release and pay $75,849 in restitution to the Internal Revenue Service. Her crimes demonstrate the importance of maintaining accurate business records and adhering to tax laws.
The case serves as a reminder that those who engage in tax evasion will be held accountable for their actions. The Internal Revenue Service-Criminal Investigations Division will continue to combat crimes targeting vulnerable individuals, such as the one perpetrated by Witt.
Key Facts
- State: Iowa
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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