FOR IMMEDIATE RELEASE
March 30, 2001
GRAND JUNCTION -- United States Attorney Thomas L. Strickland and Stanley M. Vann, Special Agent In Charge, IRS-Criminal Investigation, Denver Field Office, announced that LYNN ASHLEY, Chiropractor, age 53 of Crawford, Colorado, was sentenced today to 16 months in prison following a guilty verdict rendered by U.S. District Magistrate Judge James M. Robb. ASHLEY had been on trial in Federal District Court in Grand Junction and found guilty on January 12, 2001. ASHLEY was charged in a two count indictment by a federal grand jury on July 13, 2000, for failing to pay federal income taxes for the calendar years 1994 and 1995.
ASHLEY was sentenced to serve a total of 16 months (10 months on count one and 6 months on count two of the indictment to be served consecutively). He was also ordered to pay a fine of $10,000.00, costs of prosecution of $10,000.00 and a special assessment of $50.00. Judge Robb ordered ASHLEY to pay the $10,000.00 fine immediately. According to the indictment, during the calendar year 1994, ASHLEY received taxable earnings of $10,214.14, on which he owed the United States an income tax of $4,037.00. This amount was required by law to be paid on or by April 15, 1995, to the Internal Revenue Service. During the calendar year 1995, ASHLEY received taxable earnings of $13,947.27, on which he owed the United States an income tax of $5,182.00. This amount was required by law to be paid on or by April 15, 1996, to the Internal Revenue Service.
The earnings generated from his chiropractic services were deposited into trust accounts, and later used in part by ASHLEY for personal expenses.
According to Stanley Vann, SAC, Denver Field Office of the Internal Revenue Service, "We are protectors of the National Treasury and have a duty to current and future generations to see to it that all citizens pay their fair share. Prosecution of violations of the internal revenue laws serve to deter others; and increases the public confidence of conscientious taxpayers that the Service prosecutes violators." Vann went on to say "Judge Robb's sentence in this case is the result of continuous compliance efforts initiated by the IRS-Criminal Investigation to foster voluntary compliance with the nation's tax laws."
Criminal prosecutions for tax violations are part of the IRS-Criminal Investigation 's Tax Gap Strategy. The Tax Gap is a phrase coined to describe the true tax liability less those taxes paid voluntarily. According to the most recent data, the Tax Gap is estimated to be $195 billion. IRS-Criminal Investigation has committed significant resources to investigations with the greatest potential impact on narrowing this gap. The Tax Gap has a negative effect on the economy and the ability of the United States to pay off the federal debt."
Patricia Davies, Assistant United States Attorney, prosecuted the case. For more information about the Tax Gap see http://www.treas.gov/irs/ci.