Former Kentucky dentist, wife charged with conspiring to not pay all federal taxes
A dentist who practiced in Ashland for more than 15 years conspired to shortchange the government on taxes, a federal grand jury has alleged.
William Thorner and his wife, Kathy, are charged with one count each of conspiracy to defraud the federal government. Kathy Thorner also faces charges of failing to pay in all required payroll withholdings and of filing false returns.
William Thorner started practicing in Kentucky in 1991 and moved to South Carolina in 2018, according to a post on a dental industry website.
While he was in Ashland, Thorner had a practice called Caring Dentistry, where his wife worked as office manager and bookkeeper, according to the indictment.
Between 2013 and 2017, Kathy Thorner allegedly deducted federal income taxes and Medicare and Social Security taxes from employees’ checks but didn’t pay in all the money to the government.
She also didn’t properly pay in money deducted from employees for other benefits, including 401k plans, the indictment said.
At the same time, Kathy Thorner caused the business to spend hundreds of thousands of dollars on vacations, gifts, jewelry and credit card purchases, the indictment charged.
The couple spent more than $900,000 on personal expenses from Caring Dentistry business accounts from 2013 to 2017 while only paying a portion of the payroll taxes owed, the indictment charged.
The couple, who received multiple notices about unpaid payroll taxes, “significantly understated” their income and overstated federal withholdings from the business, the indictment said.
The conspiracy charge is punishable by up to five years in prison.
William and Kathy Thorner pleaded not guilty at their initial court appearance Tuesday and were released pending trial. Their attorneys declined comment.
U.S. Magistrate Judge Edward B. Atkins scheduled their trial to begin Jan. 10.
