A Porter County woman has been indicted in federal court on nine counts of willful failure to pay federal payroll taxes.

The Indictment alleges that Kathy Lynch, 61, of Kouts, has owned and operated two health care clinics, Kouts Health Care, Inc. and its predecessor company Kouts Family Health Care, Inc. since January 1999.

As alleged in the indictment, between January 1999 and September 2015, Lynch withheld federal income taxes and Medicare and Social Security contribution taxes from her employees’ paychecks but failed to submit over $500,000 of the withheld taxes to the Internal Revenue Service.

During this time, the indictment alleges that Lynch used her company’s bank account to pay personal expenses such as mortgage and car payments, while failing to pay her federal payroll tax obligations.

The case is being investigated by the Internal Revenue Service Criminal Investigation Division and is being prosecuted by Assistant United States Attorney Abizer Zanzi.