A Yuma businessman has conceded to tax evasion charges, after failing to fork over federal payroll taxes withheld from his employees' wages. Sources indicate that Philip Kevin Clark, 61, proprietor of a water company located in Yuma, Arizona, entered a guilty plea on Tuesday for the misdeed of not paying employment taxes.
In a report from the U.S. Attorney’s Office for the District of Arizona, it's detailed that Clark has acknowledged deducting approximately $395,250 designated for taxes from his employees’ paychecks during 2017 to 2021, funds that never saw remittance to the IRS. The ramifications of his conviction could be as steep as $250,000 in fines, and potentially up to five years in federal prison.
Currently, Clark's fate hangs in the balance with a sentencing hearing scheduled on July 28, 2025, before United States District Judge Steven P. Logan. The IRS Criminal Investigation Phoenix Field Office's meticulous investigative work led to Clark's admission of guilt. Kevin M. Rapp, Assistant U.S. Attorney for the District of Arizona, Phoenix, is spearheading the prosecution efforts, amidst a climate of increasing scrutiny on tax compliance.
