Employment tax crimes land Kansas home health care business owner in prison


Date: July 14, 2022

Contact: newsroom@ci.irs.gov

Kansas City, KS — U.S. District Judge Julie A. Robinson sentenced a former Kansas business owner to one year and one day in prison for employment tax fraud.

Lance Ashley was the sole owner and operator of Ashley Home Care Services (AHCS), a home health care business that provided daily living services in the Overland Park area. AHCS received payment for services from insurance companies and the State of Kansas.

According to court documents, Ashley was responsible for all financial matters relating to AHCS, including handling the company's payroll and collecting and submitting employment taxes to the IRS. However, from 2013 through 2016, AHCS failed to pay all the employee withholdings it collected to the IRS. Instead, Ashley used some of the funds to pay business and personal expenses.

In 2016, after the IRS took action to collect AHCS's unpaid employment taxes, Ashley provided fraudulent bank records to the IRS, filed false IRS forms, and did not fully disclose all his business bank accounts.

Court documents further revealed, Ashley incorporated Spectrum Home Care, LLC in July 2015 but did not disclose its existence or identify it as a relevant entity. He attempted to use it to conceal AHCS's operations. Ashley's actions caused a total tax loss to the IRS of approximately $321,476.

"Employment tax evasion is not a victimless crime. When Mr. Ashley failed to pay these taxes over to the IRS, it affected the future Medicare and Social Security benefits of his employees," said IRS Criminal Investigation Special Agent in Charge, Tyler Hatcher. "Today's sentencing reflects the seriousness of failing to meet this obligation."

In addition to the prison term, Ashley was ordered to pay $321,476 in restitution and serve two years of supervised release.

The case was prosecuted by Trial Attorney Julia Rugg of the DOJ Tax Division and Assistant U.S. Attorney Ryan Huschka of the U.S. Attorney's Office for the District of Kansas. The case was investigated by IRS:CI.