The New York State Department of Taxation and Finance today announced Sheryl Spotts, owner of Spotts Innovations, Inc. an awnings and window furnishings business located at 3080 Lake Road, Horseheads, NY, pled guilty to felony criminal tax fraud after an investigation of sales tax collections at the business.

Between 2011 and 2016, Spotts collected a total of $125,735.28 in sales tax from customers, but failed to file the necessary sales tax returns and remit that money to the Tax Department as required by law. In addition to paying back the full amount of taxes collected, Sheryl Spotts and her husband William Spotts paid an additional $111,284.43 in interest.

“Business owners who steal sales tax paid by their customers deprive their communities of revenue for vital public programs and services and put law-abiding businesses at a competitive disadvantage,” said New York State Acting Commissioner of Taxation and Finance Amanda Hiller. “We’ll continue to work with all levels of law enforcement, including the Chemung County District Attorney’s Office, to root out tax evasion and level the playing field for all businesses.”

Chemung County District Attorney Weeden Wetmore said, “Theft of sales tax is a crime that does not immediately impact a community, but instead has an insidious effect as it steals monies over time belonging to the state and local municipalities.  We hope that by prosecuting such crimes we can deter future tax fraud. Our office thanks the New York State Department of Taxation and Finance for their partnership and support with the investigation and prosecution of this matter.”

Report fraud

You can report tax evasion and fraud online at the Tax Department's website or by phone at 518-457-0578. The information is kept confidential. The Tax Department promptly reviews each complaint and takes corrective action when appropriate.