Morgantown woman faces 5 years in prison after pleading guilty to federal tax fraud

Crime

FILE – In this photo March 22, 2013 file photo, the exterior of the Internal Revenue Service (IRS) building in Washington. A complaint filed with the IRS alleges that a conservative group is violating its nonpartisan and nonprofit status by using a voter data system linked to the Republican party. The complaint is against the American Legislative Exchange Council. (AP Photo/Susan Walsh, File)

CLARKSBURG, W.Va. – A Morgantown woman has admitted to a federal payroll tax fraud charge, United States Attorney William Ihlenfeld announced.

Diann Clark, 59 of Morgantown, pleaded guilty Thursday, to one count of “Willful Failure to Collect or Pay Over Employment Tax.” Clark was employed by Alpha Associates, Inc., a civil engineering firm, in Morgantown. Clark was an office manager and bookkeeper at Alpha Associates, where she managed payroll between 2014 and 2018, according to a news release from Ihlenfeld’s office. Clark was responsible for collecting and paying over to the IRS Social Security, Medicare, and income taxes withheld from the wages of Alpha Associates employees, the release said. Despite knowing the firm withheld these payroll taxes from its employees’ paychecks, Clark did not pay over approximately $1,900,000, in such taxes to the IRS, the release went on.

Clark faces a statutory maximum sentence of five years in federal prison, as well as a period of supervised release, restitution and monetary penalties.

The IRS investigated the case.

U.S. Magistrate Judge Michael Aloi presided over Thursday’s plea hearing.

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