April 18, 2011
COUPLE PLEADS GUILTY TO FAILING TO FILE TAX RETURNS
DENVER – Thomas Williams, age 66, and Linda Williams, age 64, of Erie, Colorado, have plead guilty to one count of failing to file a tax return, United States Attorney John Walsh and IRS Criminal Investigation, Denver Field Office, Special Agent in Charge Sean Sowards announced. Linda Williams pled guilty before U.S. Magistrate Judge Michael J. Watanabe. She will be sentenced by Judge Watanabe on September 7, 2011. Thomas Williams pled guilty today before U.S. Magistrate Judge Kristen L. Mix, and is scheduled to be sentenced by Magistrate Judge Watanabe on the same day as his wife.
Thomas and Linda Williams were charged by an Information on April 7, 2011for one count of failure to file a tax return. Thomas Williams plead guilty today and Linda Williams plead guilty on April 7, 2011.
According to information contained in the Williams’ Information and plea agreements, from January 1, 2006 through 2008, Thomas and Linda Williams operated two corporations, L&J Holdings LTD and P&G Group LTD. They were the sole shareholders and intermingled their personal funds with those of the corporations. During tax year 2006, the corporations earned $1,385,264.27 in income and incurred $1,254,014.75 in business expenses; the Williams however did not file tax returns for either company for tax year 2006, nor did the corporations pay the tax that was due and owing. These returns were due to the IRS by September 15, 2007. Furthermore, the Williams were required to pay personal income taxes on the dividends they received from the corporations for tax year 2006 which they did not. The Williams knew they were required to file tax returns for both corporations for tax year 2006, but willfully did not file them.
In addition, the Williams have not filed tax returns for either company for tax years 2005, 2007 and 2008. Moreover, the Williams did not include the income they received as dividends from these corporations on their personal income tax returns for those years, nor did they pay the personal tax due and owing on that income.
The Williams agree to pay restitution to the Internal Revenue Service ("IRS") in the amount of all taxes, interest, and penalties due and owing from 2005 forward. They admit that for tax year 2006, the corporate tax due and owing for L&J Holdings LTD is $36,902.85 and the individual tax due and owing for the Williams is $14,834.31, for a combined total tax due and owing of $51,737.16. They also agree to file complete and accurate corporate tax returns for L&J Holdings LTD and P&G Group LTD for the years 2005 through 2008; and to file amended complete and accurate individual income tax returns properly reporting the income from all of the corporations on their individual income tax returns for tax years 2005 through 2008. The Williams also agree to cooperate with the IRS in its civil examination, determination, assessment, and collection of income taxes related to their personal income tax returns and any related corporate/entity tax returns, and further agree not to conceal or transfer for no consideration any funds or property that could be used to satisfy such taxes, penalties, and interest.
“Today is the deadline for filing tax returns and this should serve as a reminder to all taxpayers that they should file complete, timely, and accurate tax returns or they could face significant penalties,” said Sean Sowards, Special Agent in Charge for IRS Criminal Investigation, Denver Field Office. “At the end of the day, cheating on your taxes is simply not worth it.”
Failing to file a tax return carries a penalty of not more than 1 year in federal prison, and a fine up to $100,000.
This case was investigated by IRS Criminal Investigation and is being prosecuted by Assistant U.S. Attorney Suneeta Hazra.
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