State College businessman gets 15-month jail sentence in tax case and must pay IRS $1 million
WILLIAMSPORT — The president of a State College medical billing services company must pay the Internal Revenue Service $1,044,796 in payroll taxes he collected but did not remit.
It was part of the sentence Thursday imposed by U.S. Intermediate District Judge Matthew W. Brann on Scott L. Lykens, 44, who in January pleaded guilty to a charge of willfully non-paying taxes.
Brann also sentenced Lykens to 15 months in prison followed by two years of probation. He is due to report on May 20.
Lykens, who requested house arrest with supervision, told the judge he never thought the situation would spiral out of control the way it did. He felt he could fix it, he said.
Family obligations that he did not reveal in court led to this, he said.
Assistant U.S. Attorney Geoffrey W. MacArthur pointed out that Lykens didn’t pay the IRS, he traveled abroad and loved to gamble.
The charge to which Lykens, president of Keystone Medical Management Solutions, pleaded guilty covered the period from 2015 to 2019, but the restitution is for the unpaid amount from 2010, when the company was established.
He had software to track payroll taxes, but chose to do it manually. MacArthur had said during the guilty plea hearing. He did not file any returns or make any payments, he said.
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