California Realtor Sentenced to Prison for Filing a False Tax Return
Did Not Report Over $1 million In Income From Marijuana Distribution Business
A Santa Rosa, California, real estate salesperson was sentenced to 24 months in prison yesterday for filing a false income tax return that did not report income earned from the sale of marijuana, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and United States Attorney Alex G. Tse of the Northern District of California.
According to court documents, Charles T. Woods, from 2012 to 2014, deposited more than $1 million dollars in cash earned from his marijuana distribution business into over 25 bank accounts he controlled. Woods hid this income from his tax return preparers by providing them with incomplete financial information, which in turn caused the filing of false tax returns for tax years 2012, 2013, and 2014. The total tax loss caused by Woods’ conduct was over $450,000.
In addition to the term of imprisonment imposed, Woods was ordered to serve one year of supervised release and pay $466,707 in restitution to the Internal Revenue Service.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Tse commended special agents of IRS-Criminal Investigation, who investigated the case, as well as Tax Division Trial Attorney Christopher Magnani and Assistant U.S. Attorney José A. Olivera, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.