Rapid City Business Owner Sentenced for Not Paying Employee Taxes

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FILE PHOTO: Signage is seen at the United States Department of Justice headquarters in Washington, D.C.

United States Attorney Alison J. Ramsdell announced that a Rapid City, South Dakota, man convicted of Failure to Withhold, Properly Account for, and Pay Over Tax was sentenced on June 30, 2022, by Chief Judge Roberto A. Lange, U.S. District Court.

Frank Morrison, age 72, was sentenced to 13 months in federal prison, followed by two years of supervised release, and ordered to pay a $200,000 fine, $684,927.56 in restitution to the Internal Revenue Service (IRS), and a $100 special assessment to the Federal Crime Victims Fund

Morrison was charged on March 18, 2022, and pleaded guilty on April 1, 2022. The conviction stems from Morrison, while the owner of Thirsty’s Bar and Restaurant in Rapid City, failing to pay over taxes to the IRS after he withheld those taxes from his employees from 2008 through 2020. Morrison then used a large portion of those funds for his own personal use.

The investigation was conducted by IRS Criminal Investigation. Assistant U.S. Attorney Benjamin Patterson prosecuted the case.

Morrison was immediately remanded to the custody of the U.S. Marshals Service.