Cape Girardeau woman sentenced to probation for business tax fraud

A Cape Girardeau woman was sentenced to five years' probation Monday for filing false tax returns that included her husband's medical practice.

Patricia Stahly, 57, was the business manager for her husband, Dr. Randall L. Stahly. The medical practice was operated as a sole proprietorship and did business under the name Neurological Consultants of Cape. Patricia Stahly maintained the practice's finances and sent information to their tax accountant for preparation of federal income tax returns, which she filed jointly with her husband.

Patricia Stahly filed the couple's tax returns for 2005 and 2006. Information on the returns contained substantial understatements of the gross receipts for the medical practice and also claimed substantially inflated business expenses, according to a news release from the U.S. Attorney's Office Eastern District of Missouri.

The understatements resulted in false reporting of the net profit of the practice. Based on the misstated figures, Stahly showed the total tax for the 2005 return to be $64,151, when it should have been $127,204. For the 2006 return she showed it to be $17,492 when it should have been $130,021, according to the release.

The tax loss resulting from the returns is $175,532.

Stahly pleaded guilty in August to two federal felony counts of filing false tax returns. In addition to probation, the court also imposed a $15,000 fine and ordered Stahly to make restitution to the IRS of $711,748, which includes tax years from 2000 through 2006. Stahly must also perform 80 hours of community service.

Pertinent address:

599 Independence St., Cape Girardeau, MO