GEORGETOWN, S.C. (WBTW) – Agents with the South Carolina Department of Revenue arrested a Georgetown County man and his wife on multiple tax charges.
Larry A. Sypolt, 43, of Georgetown, owner of LASCO Corp in Richland County, was arrested and charged on Thursday 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.
According to the SCDOR, Sypolt failed to file a South Carolina income tax return for 2017 when he owed more than $9,800 in taxes to the state. 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, agents said.
On his 2018 state tax return, Sypolt 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 tax return, he inflated his business expenses and reported a loss of $474,050 in income when he actually earned about $126,696 in income from his business, the SCDOR said. For the two years, he attempted to evade more than $23,500 in state income tax, the SCDOR claims.
According to warrants, Sypolt also withheld a total of $61,807 in taxes from employees’ pay for tax years 2017 and 2018. He 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, according to warrants.
According to the warrant, Sypolt 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.
Jennifer L. Sypolt, 35, of Greenville, was arrested Monday and charged with one count of forgery and one count of conspiracy. As Larry Sypolt’s co-conspirator, she willfully created and then submitted a fraudulent W-2 in October 2019 on behalf of her spouse, the SCDOR claims. With the fraudulent numbers, she assisted Larry Sypolt in attempting to receive a $2,278 refund, agents said.
Larry Sypolt is being held in the Alvin S. Glenn Detention Center pending a bond hearing. If convicted, he faces up to one year in prison and/or a fine of $10,000 for failure to file, up to five years in prison and/or a fine of $10,000 for the tax evasion charge, and up to five years in prison and/or a fine of $10,000 per failure to collect and pay a withholding tax charge.
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.