FORMER BELLEVUE REAL ESTATE SALESMAN PLEADS GUILTY
TO FAILING TO FILE INCOME TAX RETURNS
DAVID FRANCIS SMITH, 55, of Bellevue, Washington, pleaded guilty today to failing to file his federal income tax return for the calendar year 1999 in violation of Title 26, United States Code, Section 7203. SMITH, who worked as a real estate agent for REMax Eastside Brokers, Inc., specializing in land development transactions, admitted, as part of the plea proceedings, that he had failed to file his income tax returns for the calendar years 1998 through 2001. During these years he had earned the following real estate commissions:
1998 – $97,974.00
1999 – $155,855.00
2000 – $112,460.00
2001 – $123,454.95
For the calendar year 1999, a person was required to file an income tax return if he has received more than $7,050 in gross income for the calendar year. SMITH admitted that he was aware of his legal obligation to file his tax returns and that he willfully elected not to do so. He also acknowledged that during these years, he deliberately used a variation on his actual social security account number on various real estate forms to cause his commissions earned from real estate transactions to be misreported to his employer and to the Internal Revenue Service. During these years, SMITH did not maintain a checking or savings account, and routinely cashed his commission checks and conducted his financial dealings using cash or money orders.
For the four years in question, SMITH failed to pay federal income taxes and self-employment taxes totaling in excess of $61,000. The tax due and owing from 1999, the tax year in question in the plea proceeding, was approximately $19,800. After the criminal investigation commenced, SMITH made payments to the Internal Revenue Service for the full amount of the taxes due and owing for the four calendar years in question.
The Court set this case for sentencing on January 6, 2006 in front of Chief U.S. District Judge Robert S. Lasnik. SMITH faces a maximum term of imprisonment of one year, a fine not to exceed $100,000, together with the costs of prosecution.
The case was investigated by the Internal Revenue Service Criminal Investigation Division (IRS-CID) and prosecuted by Assistant United States Attorney Robert Westinghouse.
For additional information contact Emily Langlie, Public Affairs Officer for the United States Attorney's Office, Western District of Washington at (206) 553-4110.