Henderson County Man Guilty of Federal Income Tax Violations
Department of Justice
Office of Public Affairs
TYLER, Texas – Joseph A. Masso, a 64-year-old resident of Athens, Texas, pleaded guilty to federal income tax violations, announced U.S. Attorney John M. Bales today.
Masso was charged with making and subscribing to a false tax return for the calendar year 2011 in violation of 26 U.S.C. ' 7206(1). According to information presented in Court, Masso formed a Texas limited liability company known as Lone Star Western & Casual LLC in December 2007. Lone Store operated retail clothing stores in Athens, Corsicana, and Waxahachie, Texas. For tax years 2009-2011, Masso falsely understated the gross receipts for these businesses on his IRS Form 1040 Schedule C by more than $5 million. As a result, he falsely understated his tax liability for the three tax years by approximately $950,000.
At sentencing, Masso faces imprisonment for up to three years. Masso has already agreed to pay restitution in excess of $900,000 to the IRS as well as a civil fraud penalty of more than $450,000.
In a related civil action, Masso agreed to forfeit $800,000 to the United States. The funds were originally seized during the execution of federal seizure warrants.
This case was investigated by the Internal Revenue Service-Criminal Investigation and was prosecuted by Assistant United States Attorney Frank Coan.