NLR Businesswoman Pleads Guilty to Not Paying Taxes
By: KARK 4 News
Updated: September 2, 2011
A North Little Rock businesswoman has pleaded guilty in Federal Court in Little Rock to misdemeanor failure to pay income taxes.
Dara Booth, 43, was charged with two counts of failure to pay taxes in violation of Title 26,
United States Code, Section 7203, according to court officials.
Court documents show that in 2004, Booth started Arkansas Home Care for Seniors, LLC (AHCS) in North Little Rock and was owner/manager of the business from 2005 to 2008. Booth maintained a pool of qualified care providers which she assigned and scheduled with customers requiring in-home care. AHCS was a profitable home health care service provider which grossed over $3,000,000 from 2005 to 2008 with a net income for those years of more than $800,000.
According to court officials, Booth used the company's profits for herself but only claimed and paid taxes on the income she paid herself through the company payroll processor, which was minimal when compared with the figure above. From 2005 to 2008, Booth filed Forms 1040EZ and failed to report any of the profits from AHCS. As a result of this under reporting, Booth failed to timely pay the taxes on any of the AHCS income.
Her unpaid taxes on AHCS income was as follows:
Year Unpaid Taxes
2005 $53,272
2006 $66,491
2007 $73,771
2008 $85,241
Total $278,775
"In America, citizens have a responsibility to comply with the nation's tax laws. Willful
non-compliance with these laws increases the tax burden for the vast majority of our citizens who
do the right thing and pay their fair share. IRS Criminal Investigation is committed to
investigating and recommending for prosecution those who disobey the tax laws," stated SAC
Pikelis.
The statutory penalty for failure to pay taxes is not more than one year in prison and a fine of up to $100,000 for each count. Booth remains free on her own recognizance pending sentencing November 30th.
Dara Booth, 43, was charged with two counts of failure to pay taxes in violation of Title 26,
United States Code, Section 7203, according to court officials.
Court documents show that in 2004, Booth started Arkansas Home Care for Seniors, LLC (AHCS) in North Little Rock and was owner/manager of the business from 2005 to 2008. Booth maintained a pool of qualified care providers which she assigned and scheduled with customers requiring in-home care. AHCS was a profitable home health care service provider which grossed over $3,000,000 from 2005 to 2008 with a net income for those years of more than $800,000.
According to court officials, Booth used the company's profits for herself but only claimed and paid taxes on the income she paid herself through the company payroll processor, which was minimal when compared with the figure above. From 2005 to 2008, Booth filed Forms 1040EZ and failed to report any of the profits from AHCS. As a result of this under reporting, Booth failed to timely pay the taxes on any of the AHCS income.
Her unpaid taxes on AHCS income was as follows:
Year Unpaid Taxes
2005 $53,272
2006 $66,491
2007 $73,771
2008 $85,241
Total $278,775
"In America, citizens have a responsibility to comply with the nation's tax laws. Willful
non-compliance with these laws increases the tax burden for the vast majority of our citizens who
do the right thing and pay their fair share. IRS Criminal Investigation is committed to
investigating and recommending for prosecution those who disobey the tax laws," stated SAC
Pikelis.
The statutory penalty for failure to pay taxes is not more than one year in prison and a fine of up to $100,000 for each count. Booth remains free on her own recognizance pending sentencing November 30th.
