Pennsylvania Anesthesiologist Pleads Guilty to Filing False Tax Returns

A Pennsylvania anesthesiologist pleaded guilty today to filing a false income tax return, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.

James G. Allen Jr., 53, admitted as part of his guilty plea that he filed false tax returns for himself and his wife for the years 2010 through 2017 with the Internal Revenue Service (IRS). He failed to report more than $3 million that the pair earned as anesthesiologists on their tax returns. According to the plea agreement, the false tax returns that Allen filed caused a loss to the government of more than $900,000.

Allen admitted that the false tax returns were based on a tax fraud scheme promoted by Peter Hendrickson in his book, Cracking the Code. Hendrickson was convicted of filing false tax returns in 2009 and sentenced to prison. 

U.S District Judge Arthur J. Schwab set sentencing for Nov. 12, 2019.  Allen faces up to three years in prison and a $250,000 fine. As part of his plea, Allen has agreed to pay restitution to the IRS in the amount of $902,721.45.

Principal Deputy Assistant Attorney General Zuckerman thanked special agents of IRS-Criminal Investigation, who investigated the case, and Trial Attorneys Melissa S. Siskind and Carl F. Brooker, IV of the Tax Division, who are prosecuting the case. 

Additional information about the Tax Division and its enforcement efforts may be found on the division’s website at www.justice.gov/tax.