Loveland Man Sentenced To Federal Prison For Obstructing The IRS And Ordered To Pay Nearly $500,000

DENVER – United States Attorney Jason R. Dunn announced that Adam M. Hausman, age 45, of Loveland, Colorado was sentenced by U.S. District Court Judge R. Brooke Jackson to serve 18 months in federal prison following by 1 year of supervised release for obstructing and impeding the administration of the Internal Revenue Laws.  Hausman, who was charged by Information on May 29, 2019 and pled guilty on September 12, 2019, was also ordered to pay $448,794 in restitution to the Internal Revenue Service.  IRS-Criminal Investigation joined in making this announcement.

According to the filed information and the stipulated facts in the plea agreement, Hausman was a general contractor who specialized in concrete and framing work with a more recent focus on large commercial jobs, including hotels and apartment complexes.  Since 1999, Hausman has filed only three U.S. Individual Income Tax Returns.  For several years in which Hausman did not file tax returns, the IRS filed substitute returns for him, resulting in a tax due and owing to the federal government of $199,810. 

In 2010, the IRS initiated collection activity for Hausman’s outstanding tax liabilities.  When the IRS attempted to collect the taxes owed, the defendant began preventing and impeding the IRS from their tax collection and assessment efforts through various methods, including the submission of false statements to the IRS wherein he failed to disclose all of his assets, filing a false Form 1040 tax return failing to report all of his income, failing to file personal tax returns for multiple years in which he received taxable income, and failing to file corporate tax returns for his business Wyoming Framers Inc.

In addition to these acts taken by Hausman to thwart the IRS, Hausman purposefully kept his assets out of the reach of IRS by operating his business in cash.  Hausman admitted to investigators that he did not want to leave his money in the bank because he knew that it would be taken by the IRS.  From January 2013 through June 2018, Hausman made cash withdrawals totaling $6,605,586.

“Interfering with the administration of the IRS is a crime, and when you don’t pay, you face financial penalties and prison time,” said U.S. Attorney Jason Dunn.  “We all must pay our part.  That didn’t happen here, and the defendant will suffer as a result.” 

“The law is clear on the issue of taxable income and who is required to file and pay taxes: there is no gray area on the subject,” said Andy Tsui, IRS Criminal Investigation Special Agent in Charge. “The true victims in tax fraud cases are the honest taxpayers who timely and accurately file their tax returns each year.  This sentence shows IRS-Criminal Investigation is working hard to make sure all taxpayers file and pay their fair share of taxes.”

This case was investigated by the Internal Revenue Service—Criminal Investigation.  The case is being prosecuted by Assistant United States Attorney Tim R. Neff.