Dental practice bookkeeper didn’t pay business taxes but spent $800,000 on vacations, personal expenses
Kathy Thorner, who ran her husband's dental practice in Ashland, pleaded guilty to federal charges
ASHLAND, Ky. (WTVQ) – The woman who managed and served as bookkeeper for her husband’s dental practice in Ashland, admits to failing to pay taxes while spending $800,000 from business accounts on vacations, retail purchases, jewelry and other personal expenses, according to the Lexington Herald-Leader.
The report says Kathy Thorner pleaded guilty in federal court May 27, 2022, to two charges of failing to properly account for and pay taxes, and one charge of making a false statement on a tax return.
Thorner acknowledged she failed to pay the IRS all the taxes withheld from employees’ paychecks and did not remit money withheld from those checks for benefits, according to the report.
Her husband, William Thorner, who operated ‘Caring Dentistry,’ had charges against him dismissed at the request of prosecutors, according to the report.
Prosecutors claim the tax loss from Thorner’s conduct was between $250,000 and $550,000, but she argues it’s between $100,000 and $250,000, which will be worked out as part of her sentencing, which is set for this September, according to the report.
She faces up to five years in prison on each charge of not paying taxes and three years on the false reporting charge, according to the report.