Kouts woman sentenced for tax offenses


Date: July 13, 2023

Contact: newsroom@ci.irs.gov

HAMMOND — Kathy Lynch of Kouts, Indiana, was sentenced by United States District Court Judge Philip P. Simon after being found guilty of nine counts of willful failure to pay employment taxes to the Internal Revenue Service (IRS), following a 3-day jury trial in March 2023, announced United States Attorney Clifford D. Johnson.

Lynch was sentenced to 15 months in prison followed by 1 year of supervised release.

According to documents in the case, for years Lynch failed to remit and pay federal payroll taxes for the Kouts, Indiana, nursing clinic she owned and operated. Over the course of 16 years, Lynch withheld payroll tax money from her employees' paychecks, but instead of paying those taxes over to the IRS, as she was obligated to do, she kept more than $474,000 which she spent on personal and business expenses.

The case was investigated by the Internal Revenue Service Criminal Investigation Division. This case was prosecuted by Assistant United States Attorneys Abizer Zanzi and Kevin Wolff.