Estimated read time: 1-2 minutes
This archived news story is available only for your personal, non-commercial use. Information in the story may be outdated or superseded by additional information. Reading or replaying the story in its archived form does not constitute a republication of the story.
PARIS, Kentucky — A former Utah businessman is being formally ordered to pay back nearly a quarter million dollars he reportedly owes in back taxes, or he will go to jail.
Prosecutors say Stephen Zimmerman was first ordered to pay restitution back in August. He pleaded guilty to two third-degree felonies for failing to file tax returns and unlawful dealing of property by a fiduciary.
"Right now, he owes taxpayers about $250,000," said Utah Attorney General's Office Spokesperson Paul Murphy. "That's money that should go to me, you and every other taxpayer in the state of Utah."
Murphy said Zimmerman, who runs a business raising horses, pocketed all his employees withholdings between 2006 and 2009, then gave his employees false W-2 forms making it appear their taxes had been paid.
"[The employees] honestly thought they had paid their taxes. But, actually they went to Mr. Zimmerman."
Zimmerman is denying these claims.
"Being the president of the company, they accused me of not paying in trust fund taxes that the company withheld," he said "That is just not so."
Zimmerman says he never pocketed any money and he didn't falsify documents to get out of paying taxes. He says the controller of his company, Professional Global marketing, didn't file all of the needed paperwork to the IRS, but that controller did intend to fully pay the money back when the company got on more secure financial ground.
"He hadn't paid all of the taxes," Zimmerman said. "Some, he had. Some, he had not."
Zimmerman was ordered to pay $1,000 every month, along with a payment of $12,100 every December until he pays off the full amount, or go to jail. He said he's not sure how he'll pay it back, but he plans to do it.
