PHOENIX (AP) — A Paradise Valley man has been sentenced to 21 months in federal prison in a tax evasion case.
Prosecutors say 47-year-old John Chandler Propstra also was ordered to pay more than $700,000 in restitution to the Internal Revenue Service.
Propstra had previously pleaded guilty to tax evasion.
He owned and operated several professional employment organizations, which contracted with small business owners to provide payroll services.
Prosecutors say Propstra collected federal employment taxes from his clients through his companies.
But instead of paying the taxes over to the IRS as he contracted to do, authorities say Propstra kept a significant portion of the taxes for his own personal use.
For tax years 2010 and 2011, Propstra allegedly failed to pay over to the IRS nearly $711,000 in federal employment taxes.