South Carolina Department of Revenue (SCDOR) agents arrested a Georgetown County resident, Larry Sypolt, and his spouse, Jennifer Sypolt, this week on multiple tax charges.
Larry A. Sypolt, 43, of Georgetown, owner of LASCO Corp in Richland County, was arrested today. He is charged with one count of failure to file a tax return and pay taxes; two counts of tax evasion; two counts of willful failure to collect, account for, and pay Withholding Tax; and one count of conspiracy. He is being held in the Alvin S. Glenn Detention Center pending a bond hearing.
Conspiracy: In October 2019, the defendant conspired with another to deliver a false document to the SCDOR. According to the warrant, he instructed his co-conspirator to create a fraudulent W-2 on his behalf that underreported his 2018 wages and then submit the W-2 to the SCDOR. If convicted, the defendant faces up to five years in prison and/or a fine of $5,000. Jennifer L. Sypolt, 35, of Greenville, was arrested Monday, August 16, on one count of forgery and one count of conspiracy. As Larry Sypolt's co-conspirator, the defendant willfully created and then submitted a fraudulent W-2 in October 2019 on behalf of Larry Sypolt, her spouse. The W-2 reflected underreported wages. With the fraudulent numbers, she assisted Larry Sypolt in attempting to receive a $2,278 refund. Jennifer Sypolt was released from Alvin S. Glenn Detention Center on a personal recognizance bond. If convicted, she faces up to three years in prison and/or a fine at the discretion of the court for the forgery charge and up to five years in prison and/or a fine of $5,000 for the conspiracy charge. The SCDOR is committed to the fair administration of tax laws. By taking enforcement action against noncompliant taxpayers, the Department seeks to prevent unfairly increasing the tax burden on those who do comply. If you suspect or know of anyone or a business that has committed a state tax crime, such as tax evasion or tax fraud, contact SCDOR Criminal Investigation and submit a Tax Violation Complaint Form (CID-27) to firstname.lastname@example.org or mail it to:
Failure to file a tax return and pay taxes: For tax year 2017, the defendant failed to file a South Carolina Individual income Tax Return. Having earned $81,632 in wages and approximately $355,583 in income from his business, Sypolt was required to file a return based on his income. He failed to pay more than $9,800 in taxes due to the state. If convicted, the defendant faces up to one year in prison and/or a fine of $10,000 for this charge.
Tax evasion: On his 2018 state Individual Income Tax return, the defendant willfully underreported his wages by $122,090 and failed to report approximately $697,843 in income earned from operating his business, according to warrants. On his 2019 state Individual Income Tax return, the defendant inflated his business expenses and reported a loss of $474,050 in income when he actually earned approximately $126,696 in income from his business. For the two years, he attempted to evade more than $23,500 in state income tax. If convicted, the defendant faces up to five years in prison and/or a fine of $10,000 per tax evasion charge.
Willful failure to collect, account for, or pay Withholding Tax: According to warrants, Sypolt withheld a total of $61,807 in taxes from employees' pay for tax years 2017 and 2018. The defendant paid $13,918 of the withheld taxes to the SCDOR but diverted the rest of the funds, a total of $47,889, for personal use. If convicted, the defendant faces up to five years in prison and/or a fine of $10,000 per failure to collect and pay Withholding Tax charge.
South Carolina Department of Revenue
Attn: Fraud Advisor
181 East Evans Street, Suite 5
Florence, SC 29506
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