Penny Layne Witt, Tax Evasion, Iowa 2022

Penny Layne Witt, a business owner from Iowa, has pleaded guilty to attempting to evade or defeat tax, a federal crime that carries significant penalties. According to court documents, Witt operated two tree trimming businesses, Ultimate Tree Service and Spruces Tree Service, but failed to keep accurate records and paid her employees in cash.

The investigation, led by the IRS-Criminal Investigation, revealed that Witt deliberately concealed records of her gross income and failed to file tax returns for 2016 and 2017. Despite being aware of her substantial tax liability, Witt chose not to pay her taxes, instead opting to conduct all business in cash.

The attempted tax evasion charge carries a maximum sentence of five years in prison, a maximum fine of $100,000, and up to three years of supervised release. Witt is scheduled to be sentenced by United States District Court Judge Stephanie Rose on June 27, 2022.

The case against Witt highlights the importance of accurate record-keeping and compliance with tax laws. The IRS-Criminal Investigation will continue to investigate and prosecute individuals who engage in tax evasion and other financial crimes.

Penny Layne Witt’s decision to plead guilty to tax evasion is a serious consequence of her actions. The penalties for tax evasion can be severe, and individuals who engage in this behavior can face significant fines, imprisonment, and damage to their reputation.

The United States Attorney’s Office for the Southern District of Iowa has prosecuted numerous cases of tax evasion and other financial crimes. The office is committed to ensuring that individuals and businesses comply with tax laws and regulations.

Penny Layne Witt’s case serves as a reminder to business owners and individuals to prioritize accurate record-keeping and compliance with tax laws. Failure to do so can result in severe consequences, including imprisonment and significant fines.

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