Massachusetts Man Sentenced to Prison for Filing a False Tax Return

A resident of West Bridgewater, Massachusetts was sentenced to 10 months in prison today for filing a false individual income tax return, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division. 

According to documents filed with the court, Keith Eaton failed to file federal individual income tax returns with the Internal Revenue Service (IRS) for 1998 through 2003.  In or about May 2004, the IRS assessed Eaton more than $280,000 in taxes, interest and penalties for the years 1998 through 2001.

From November 2004 to April 2008, Eaton was employed at a heating and air conditioning company in Brockton, Massachusetts.  Each year, the company provided Eaton with Forms 1099 reflecting his compensation.  Despite receiving these Forms 1099 reporting significant compensation, Eaton willfully failed to file timely individual income tax returns with the IRS for the years 2004 through 2008.  In November and December 2009, Eaton filed individual income tax returns for the years 2000 through 2008 on which he falsely reported receiving no income.

In or about November 2008, Eaton began operating Eaton Mechanical LLC, a heating and air conditioning business.  In an attempt to thwart the IRS’ efforts to collect his back taxes, Eaton caused checks from the business bank account to be made payable to himself and then cashed the checks.  Eaton used the cash to pay his personal expenses, including his mortgage.  Finally, despite having sufficient income from the operation of his business to require him to file income tax returns, Eaton failed to file individual income tax returns for the years 2009 through 2012.

In addition to the prison term imposed, Eaton was ordered to serve one year of supervised release and to pay restitution to the IRS in the amount of $399,132 for his 1998 through 2012 unpaid tax liabilities. 

Principal Deputy Assistant Attorney General Ciraolo commended the special agents of IRS-Criminal Investigation and the FBI’s Boston Field Division, who conducted the investigation, and Trial Attorneys Brittney Campbell and Kenneth Vert of the Tax Division, who prosecuted the case.  

Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.