Cadillac Man Sentenced to 20 Months in Prison for Tax Evasion

Douglas Horning, a 56-year-old Cadillac man, was sentenced to 20 months in prison for tax evasion, U.S. Attorney Andrew Birge announced Monday. He will also serve 3 years on supervised release following his sentence.

According to the plea agreement and other public records, Horning had not filed individual tax returns since 2008 or corporate tax returns since 2006. He also failed to pay all of the required “trust fund” taxes withheld from his employees’ paychecks.

Horning concealed his income by routing it through a second company, even after that company was dissolved by the State of Michigan, failing to disclose the company’s bank account to the IRS when required to do so and not including that income of the W-2 Forms he issued to himself through his business, Perfect Professionals.

He also received unreported income by paying personal expenses using Perfect Professionals’ bank account.

According to his plea deal, Horning will also have to pay over $900,000 in restitution.

“As Tax Day approaches, the Court’s sentence is an important reminder of the duty we as citizens and other taxpayers owe to each other and the government to file returns and pay legally required taxes,” said U.S. Attorney Birge. “Concealing assets from the IRS or otherwise evading these obligations can and will result in criminal prosecution.”

“The license to run a business is not a license to avoid paying taxes or collecting your employees’ withholding and not paying it over to the IRS,” said Special Agent in Charge Sarah Kull, IRS Criminal Investigation, Detroit Field Office. “Horning’s misconduct, hiding income and blatant disregard of tax laws, cheats all Americans, who pay their fair share of taxes.”