Kathryn Pocock, age 59, of Uncasville in New London County, was sentenced to 12 months and a day in prison followed by a year of supervised release, according to Leonard Boyle, United States attorney for the District of Connecticut.
Pocock pleaded guilty to the charge on Sept. 15, Boyle said.
While operating home cleaning business Sunshine Cleaners, LLC, between 2015 and 2019, she withdrew about $855,000 from the business and did not report those proceeds on tax forms for the business and on her federal income tax returns, the US Attorney's Office reported.
She also regularly cashed client checks paid to the business and deposited some checks into her personal bank account, Boyle said.
"Pocock wrote checks payable to cash from her personal and business bank accounts, and paid employees in cash without properly collecting and paying over employment tax to the IRS or sales and use taxes owed to the State of Connecticut," the US Attorney's Office reported.
She also gave false spreadsheets and documents to her tax preparer that understated her income and employee-related expenses, the report said.
Boyle said Pocock's conduct led to a total tax loss of $213,965, including unreported taxes of $180,451 owed to the IRS and $33,514 owed to the State of Connecticut.
She was ordered to pay full restitution by the judge, the report said.
The Internal Revenue Service, Criminal Investigation Division conducted the investigation.
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