Horseheads business owner pleads guilty to criminal tax fraud

HORSEHEADS, N.Y. — The owner of Spotts Innovations, Inc. pled guilty to felony criminal tax fraud after an investigation of sales-tax collections at the business, according to a news release from the New York State Department of Taxation and Finance.

Owner Sheryl Spotts collected $125,735.28 in sales tax from customers between 2011 and 2016 at the awning and window furnishing business, located at 3080 Lake Road in Horseheads, according to the state tax department. However, she failed to file the necessary sales-tax returns and remit the money to the department.

Spotts and her husband William have paid back the full amount of taxes collected along with an additional $111,284.43 in interest.

“Theft of sales tax is a crime that does not immediately impact a community, but instead has an insidious effect as it steals monies over time belonging to the state and local municipalities,” Chemung County District Attorney Weeden Wetmore said. “We hope that by prosecuting such crimes we can deter future tax fraud.”

New York State Acting Commissioner of Taxation and Finance Amanda Hiller added, “Business owners who steal taxes paid by their customers deprive their communities of revenue for vital public programs and services and put law-abiding businesses at a competitive disadvantage. We’ll continue to work with all levels of law enforcement, including the Chemung County District Attorney’s Office, to root out tax evasion and level the playing field for all businesses.”