United States Attorney James R. Dedrick Eastern District of Tennessee
FOR IMMEDIATE RELEASE Monday, March 23, 2009
[Knoxville, TN]– Thomas E. Cowan, Jr., 64, of Elizabethton, Tennessee has been indicted by a federal grand jury, charged with one count of income tax evasion and three counts of failure to file income tax returns. Cowan was arrested today and had his initial appearance before U.S. Magistrate Judge Bruce Guyton. He was released on his own recognizance.
According to the indictment, Cowan, an attorney, attempted to evade and defeat the payment of a large part of the income and self employment taxes, penalties and interest due to the United States for tax years 1993 through 1997. The indictment alleges that Cowan failed to file timely income tax returns with the Internal Revenue Service (IRS) each year and failed to pay any income tax due and owing for those years. Additionally, the indictment states that Cowan concealed his true income and assets by diverting income checks into the checking account of a family member, cashing checks, depositing earned income and making personal payments to and from his law firm’s trust account, and using nominees to conceal the ownership of assets from the United States.
The indictment also charges Cowan with failing to file federal income tax returns with the IRS for 2002, 2003, and 2004. In each of those years, the indictment states, that Cowan had gross income totaling $112,677.78, $72,412.63, and $50,971.83, respectively.
Members of the public are reminded that these are only charges and that every person is presumed innocent until their guilt has been proven beyond a reasonable doubt.
This investigation was conducted by IRS Criminal Investigation. For additional information, please contact United States Attorney James R. “Russ” Dedrick, Assistant U.S. Attorney Frank M. Dale, Jr., or Public Information Officer Sharry Dedman-Beard at 865-545-4167.