FORMER MILL CREEK RESIDENT PLEADS GUILTY TO FAILING TO FILE INCOME TAX RETURNS ON INCOME OF MORE THAN $1 MILLION
HARRIS LEE HOLMGREN, 50, of Lido, New York, pleaded guilty today in U.S. District Court in Seattle to Failure to File a U.S. Tax Return. According to the plea agreement, from 1998-2002 HOLMGREN lived in Mill Creek, Washington. He was self-employed as a roofing salesman, earning $1,624,364 over those five years, but failed to pay any taxes on his income. For purposes of sentencing, the lost tax revenue has been calculated to be as much as $324,872.
HOLMGREN will be sentenced by Magistrate Judge James P. Donohue on October 26, 2005. Failing to File a U.S. Income Tax Return is punishable by up to one year in prison and a $25,000 fine. Under the terms of the plea agreement, HOLMGREN must pay for the costs of prosecution, as well as any civil taxes, penalties and interest that may be owing for 1998-2002 as determined by the Internal Revenue Service.
In fiscal year 2004, authorities have filed 277 cases nationwide involving failure to file income tax returns. That is an increase over the 234 cases filed in fiscal year 2003. In addition, 194 people were sentenced in fiscal year 2004 for failing to file tax returns. In 92.3% of the cases, judges ordered a period of incarceration in prison, a half-way house or home confinement. The average sentence of incarceration was 3 years.
"The majority of American taxpayers file timely, accurate tax returns," said Anne Rueter, Acting IRS Special Agent in Charge for Washington. "Part of our mission is to assure those honest taxpayers that everyone pays their fair share."
The HOLMGREN case was investigated by the Internal Revenue Service Criminal Investigation Division (IRS-CID) and is being prosecuted by Assistant United States Attorney Ilene J.K. Miller.
For additional information please contact Emily Langlie, Public Affairs Officer for the United States Attorney's Office, Western District of Washington, at (206) 553-4110, or Daniel Wardlaw, Public Information Officer for IRS-CID, at (360) 696-7647 (x3).