SALEM - Former Timberlanes owner and general manager Melissa Snively-Pallard was sentenced to spend eight months under home detention for failing to pay federal employment taxes on workers' wages in 2006 and 2007.
Snively-Pallard, 33, of New Springfield, appeared for sentencing Friday before Judge Patricia Gaughan in U.S. District Court, Northern District of Ohio, in downtown Cleveland.
She could have faced up to five years in prison after pleading guilty early this year to two counts from a seven-count indictment alleging her failure to report and pay federal employment taxes withheld from the paychecks of the restaurant and motor inn employees.
Dan Dever, public information officer for IRS Criminal Investigations, reported she'll serve the time at home under electronic monitoring. She'll also be on probation for three years.
"In connection with the sentencing, Snively-Pallard reported that she had already filed all delinquent employment tax returns and paid $188,000 of back employment taxes," he wrote in an email.
She still owes $46,465 that has to be repaid to the federal government.
According to the plea agreement issued in January, Snively-Pallard was the owner, president, CEO and general manager of Timberlanes and that for seven calendar quarters, from the second quarter of 2006 through the end of 2007, she failed to report and pay to the Internal Revenue Service federal employment taxes of $234,466 on a total of $1.1 million in wages paid.
The once-popular Salem destination closed in 2009 and has remained closed since then. Local businessman Brooke Pidgeon purchased Timberlanes Restaurant and Motor Inn last July and had announced plans to reopen the facility, but did not give a date for when that would happen.