Sheryl Clanton, Employment Tax Scheme, Kansas 2023

KANSAS CITY, KS – In a shocking turn of events, Sheryl Clanton, a 61-year-old woman from Bucyrus, has been sentenced to two years in prison for her role in a brazen employment tax scheme.

According to court documents and statements made in court, Clanton, the owner and operator of multiple construction firms, including McCorkendale Construction Inc. and McClan Construction LLC, willfully failed to account for and pay over employment taxes to the IRS. The scheme, which spanned over a decade, resulted in a staggering amount of unpaid taxes, totaling $2,223,174.41.

The scheme began in 2006 when Clanton, as the president of McCorkendale, failed to pay approximately $980,536 in employee withholdings to the IRS for the first quarter of 2010 through the last quarter of 2011. When McCorkendale faced financial difficulties due to outstanding tax debts and a bank mortgage foreclosure in 2011, Clanton abandoned the company and started McClan Construction LLC.

However, Clanton’s troubles did not end there. From the second quarter of 2012 through the fourth quarter of 2017, Clanton failed to pay approximately $1.1 million of employment taxes or file on behalf of McClan quarterly payroll tax returns as required by law. Additionally, Clanton operated a third underground construction business, NJ Trenching LLC, and failed to report or pay to the IRS nearly $100,000 of employment taxes relating to NJ Trenching between 2012 and 2015.

In addition to the prison sentence, U.S. District Judge Daniel Crabtree for the District of Kansas ordered Clanton to serve three years of supervised release and pay $2,223,174.41 in restitution to the United States. The case was investigated by the IRS Criminal Investigation and prosecuted by Trial Attorneys Robert Kemins and Dominick Giovanniello of the Justice Department’s Tax Division.

Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Tax Division made the announcement, stating, ‘The Tax Division is committed to holding individuals accountable for their role in large-scale tax evasion schemes. This sentence should serve as a warning to those who would attempt to cheat the system.’

The case serves as a stark reminder of the consequences of tax evasion and the importance of holding individuals accountable for their actions. As the investigation and prosecution of Clanton demonstrate, the Tax Division is committed to ensuring that those who would engage in such schemes are brought to justice.

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