Whiting Man Sentenced for Tax Fraud

A man who filed false and fraudulent tax returns was sentenced August 20, 2018, to two years’ probation.

Kurt Neldeberg, 65, from Whiting, Iowa, received the sentence after a February 28, 2018, guilty plea to making a false and fraudulent tax return.

At the guilty plea hearing, Neldeberg admitted that from at least 2009 through 2012, he failed to report a total of approximately $315,512 in income from grain sales which resulted in over $100,000 in unpaid and taxes due and owing for those tax years.  Neldeberg admitted he deposited proceeds from farm grain sales into personal bank accounts, and willfully failed to inform his bookkeeper and his tax preparer he had done so.  Neldeberg knew that the farm receipts reported on Schedule F of his joint federal tax returns were incorrect, resulting in underreported income for each of the tax years 2009-2012 and tax losses therefrom.   

Neldeberg was sentenced in Sioux City by United States District Court Judge Mark W. Bennett.  Neldeberg was sentenced to 24 months’ federal probation and ordered to complete 120 hours of community service.  He was also ordered to pay a $100 special assessment.  Finally, Neldeberg was ordered to make full restitution to the Internal Revenue Service, including any and all interest and penalties determined to be due and owing.  Neldeberg had previously posted a $125,000 cash bond to the IRS for restitution purposes. 

The case was prosecuted by Assistant United States Attorney Shawn S. Wehde and investigated by the Internal Revenue Service. 

Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. 

The case file number is 18-4012.  Follow us on Twitter @USAO_NDIA.