The owner of Greenville Architectural Glass (GAG) in Greenville, Ohio, has been sentenced to 14 months in prison for failing to pay employment taxes and other misconduct. Gail Cooper pleaded guilty in April 2019, admitting that her actions caused a loss of more than $500,000 to the U.S. government. Cooper was the sole owner of the glazing company from 2007 to 2015.
Cooper admitted to withholding income, Social Security and Medicare taxes from employees’ wages from the first quarter of 2013 through the second quarter of 2015, but never turning those taxes over to the Internal Revenue Service (IRS). She also failed to pay unemployment taxes. According to a statement from U.S. Department of Justice’s (DOJ) Office of Public Affairs, Cooper caused more than $280,000 in payroll taxes not to be paid.
Cooper also filed false individual income tax returns for the years 2008 through 2010, on which she understated GAG’s gross receipts and overstated its expenses. According to the DOJ, Cooper directed the company’s bookkeeper to delete invoices from its software after GAG received payment from a client to make it appear as if GAG had not received the payment. Cooper also paid personal expenses with business funds, including utility bills for her residence and rental properties, and caused these to be classified as business expenses. Cooper willfully failed to file income tax returns for the years 2011 through 2014, despite having a professional tax return preparer complete the returns. In total, Cooper’s conduct caused a tax loss of $587,516 to the U.S.
In addition to the prison sentence, U.S. District Judge Thomas M. Rose ordered Cooper to serve two years of supervised release and pay restitution to the IRS in the amount of $659,262.39.