Colorado Home Healthcare Business Owner Pleads Guilty to Tax Evasion
Caused Tax Loss of More than $550,000
A Brighton and Denver, Colorado, business owner pleaded guilty today to tax evasion, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Bob Troyer for the District of Colorado.
According to documents and information provided to the court, Michelle Medina, 51, owned and operated RHHS Inc., also doing business as Reliable Home Health Services Inc., which provided home healthcare services. From 2008 through 2011, Medina concealed hundreds of thousands of dollars in personal income by having RHHS Inc. directly pay her personal expenses and by withdrawing cash from the company’s bank accounts for personal use. Medina did not inform her tax return preparer of this additional income and filed false individual income tax returns underreporting her income. Medina also failed to file 2008 through 2011 corporate income tax returns for RHHS. She admitted her actions caused a total tax loss of between $550,000 and $1.5 million.
U.S. District Court Judge Philip A. Brimmer scheduled sentencing for March 13, 2018. Medina faces a statutory maximum sentence of five years in prison, as well as a period of supervised release, restitution, and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg and U.S. Attorney Troyer commended special agents of IRS Criminal Investigation, who conducted the investigation, and Trial Attorneys Kathleen M. Barry and Benjamin J. Weir of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.