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Justice News

Department of Justice
U.S. Attorney’s Office
Northern District of California

Monday, July 1, 2013

San Anselmo Resident Sentenced to 5 months for Tax Fraud

SAN FRANCISCO, Calif. – John Kieran Hynes was sentenced today to 5 months in prison for filing a false tax return, announced United States Attorney Melinda Haag and IRS-CI Special Agent in Charge José M. Martinez.

According to court documents, during 2005, Hynes was the owner of Newtown Construction. Hynes admitted that when he received check payments for contracted construction services rendered during the 2005 tax year, he would either deposit the entire check into his business bank account, cash the entire amount of the check, or cash a portion of the check and deposit the remainder of the check into his business account. The amount Hynes received back in cash when he deposited only a portion of the check was called a “less-cash withdrawal.”

Hynes’ bookkeeper relied on the deposited amounts shown on his monthly bank statements to determine his gross business receipts in 2005. Hynes intentionally did not tell his bookkeeper about the less-cash withdrawals to prevent his bookkeeper from including the less-cash withdrawal amounts among the gross receipts that the bookkeeper tracked in the company accounting records.

In order to file his 2005 tax return, Hynes provided his tax return preparer with the company accounting records prepared by his bookkeeper. Hynes knew those accounting records understated the gross receipts earned under the name Newtown Construction because the gross receipts recorded did not include the less-cash withdrawals.

On his 2005 tax return, Hynes knowingly failed to report additional gross receipts of $214,595 earned by Newtown Construction which resulted in a tax loss to the United States of $66,524.

On March 12, 2013, Hynes, 46, of San Anselmo, California, pleaded guilty to one count of filing a false tax return.

In addition to 5 months imprisonment, the Court imposed one year of supervised release including 5 months of home detention, a $3,000 fine, and restitution of $66,524, to the Internal Revenue Service.

Special Assistant United States Attorney Charles Parker is prosecuting this case. The prosecution is the result of an investigation by the Internal Revenue Service, Criminal Investigation.



Updated November 18, 2014