November 5, 2012
Department of Justice
United States Attorney William C. Killian Eastern District of Tennessee
Virginia Man Sentenced For Filing False Income Tax Return
GREENEVILLE, Tenn. – Steven R. Grose, 52, of Lebanon, Va., was sentenced on Nov. 5, 2012, by the Honorable J. Ronnie Greer, U.S. District Court Judge, to serve five years of probation. As special conditions of his probation, Grose was ordered to serve 76 days of intermittent confinement during the first year of his probation, serve 11 months of home detention during the second year of probation, and perform 250 hours of community service.
Grose pleaded guilty in May 2012 to an information charging him with filing a false federal income tax return. As set out in his plea agreement, Grose, a certified registered nurse anesthetist (CRNA), reported his business income and expenses via a wholly-owned corporation. The net business profit or loss to the corporation was to be reported on Grose's corresponding individual income tax returns. Grose intentionally and falsely overstated the corporation’s business expenses causing the corporation’s net business profit to be materially understated. He reported net losses from the corporation on his 2005 through 2009 tax returns, when he actually had net income from the corporation each year ranging from $60,640.25 to $234,516.01. As a result, he actually owed taxes totaling $233,744.00 for the five-year period.
Grose was also ordered to pay restitution of $277,262.34 to the Internal Revenue Service (IRS) for the taxes due and interest on those taxes. He stated that he also faced substantial civil penalties from the IRS.
"The IRS’s largest enforcement program is directed at the portion of American citizens who intentionally violate their known legal duty to pay their fair share of taxes. Those taxpayers who choose to do the right thing should be assured that the system works and justice will be done. No one is above the law," stated Christopher Henry, Special Agent in Charge, IRS Criminal Investigation-Nashville Field Office.
The charges were the result of an investigation by the IRS-Criminal Investigation. Assistant U.S. Attorney Neil Smith represents the United States.