NORFOLK, Va. (AP) - A woman has been sentenced for failing to pay taxes on nearly $900,000 transferred from her father’s gift shop on the North Carolina-Virginia state line.
Amy Planch of Moyock, North Carolina, was sentenced Friday in U.S. District Court in Norfolk to three years in prison, the Virginian-Pilot of Norfolk (https://bit.ly/2kinstX) reported.
Planch was also fined $75,000 and ordered to repay the money.
She was a part owner of the business and was forgiven by her father, who later rehired her to manage the store.
Investigators say Planch transferred more than $887,000 from the Border Station, a popular stop for people heading to and from the Outer Banks. The money went to pay Planch’s personal bills and to the Christmas Shoppe she operated in another building her father owned near The Border Station, a popular stop for ice crease, barbecue and lottery tickets.
She pleaded guilty last year to evasion of income assets, failing to pay $240,000 in federal taxes.
The majority owner, Clarence Russell Hastings, noticed problems in the Border Station’s bank account in 2012 and had an audit performed. An accounting firm asked Hastings in 2013 how he wanted to handle the missing money on the business’s taxes. Among his options: He could report it as a loan to Planch or write it off as a loss.
Hastings decided to classify the money as “additional income” paid to Planch. Court documents indicate she never paid taxes on that money.
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Information from: The Virginian-Pilot, https://pilotonline.com
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