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Kingman childcare owner sentenced to prison in tax case

A northwest Arizona businesswoman was sentenced Monday to 18 months in federal prison for withholding nearly $320,000 in income taxes between 2004 and 2011.

A U.S. district judge in Phoenix also ordered Raycene Osterman, 55, to pay full restitution to the IRS and undergo three years of supervision upon her release.

Osterman is the founder and president of K-Top, Inc., the parent company for three Kiddie Korral daycare centers in the Kingman, Ariz., area. Osterman pled guilty in November to wilfully failing to pay taxes.

In her guilty plea, Osterman said despite repeated warnings she used payroll tax deductions from her employees to support her business.

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