Wednesday, May 23, 2012

Contractor admits to tax violation

Guilty plea entered in U.S. District Court

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By TERRY SMITH
Express Staff Writer

The Idaho U.S. Attorney's Office reported that a Hailey construction contractor pleaded guilty May 16 to "failure to pay over federal income tax" to the Internal Revenue Service.

In a news release, the U.S. Attorney's Office identified the contractor as Garth Callaghan, 57, owner and operator of Garth Callaghan Construction Inc. His guilty plea was entered in U.S. District Court in Boise.

The news release stated that Callaghan entered into a plea agreement, wherein he admitted that in paying employees he had "failed to collect any withholdings and trust fund taxes on these payments." As part of the plea agreement, Callaghan agreed to pay $177,096 in restitution to the IRS.

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Sentencing was scheduled for July 30 before Chief U.S. District Judge B. Lynn Windmill. The U.S. Attorney's Office reported that the federal crime is punishable by up to three years in prison, a fine of up to $250,000 and up to three years of supervised probation.

The case was investigated by the IRS.

Terry Smith: tsmith@mtexpress.com

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