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.
