Dallas Insurance Agent Pleads Guilty to Federal Tax Offense

DALLAS — Kyle Scott Boyd, an insurance agent from Dallas, appeared this week before U.S. Magistrate Judge Paul D. Stickney and pleaded guilty to a felony Information charging one count of making or subscribing to a false tax return, announced U.S. Attorney John Parker of the Northern District of Texas.

According to the factual resume filed in the case, Boyd, a licensed insurance agent, owned and operated Insurance 3 Group, Inc. in Dallas.  During tax years 2008 and 2009, Boyd received insurance commissions (income) of approximately $526,465 and $572,942, respectively.  The majority of those commissions, paid by various insurance companies, were deposited into an account, held by Insurance 3 Group, Inc., at Amegy Bank, for which Boyd was the sole signatory at least during tax years 2007 to 2009.  Boyd used the funds in that account for both personal and business expenses.

In early September 2010, Boyd filed his federal income tax returns for tax years 2008 and 2009 in connection with obtaining financing for his residence in Dallas.  Prior to that, according to the factual resume, Boyd had not filed any tax returns on behalf of Insurance 3 Group, Inc., nor any individual tax returns for tax years 2007 through 2009.  With both returns, Boyd filed Schedule C forms that identified his income source as “insurance agent license rental,” and he reported $12,000 in income for tax years 2008 and 2009. 

In reality, according to the factual resume, Boyd had not rented out his insurance agent license, and he received insurance commissions of more than $500,000 for each of those years, as noted above.  Based on bank records, Boyd’s business expenses for tax year 2008 totaled approximately $371,591, which left a net business income of approximately $154,874.  His business expenses for tax year 2009 totaled approximately $349,670, netting a business income of approximately $223,272.  The resulting tax loss, according to the factual resume, was $43,364 for tax year 2008 and $62,516 for tax year 2009.

The maximum statutory penalty for making or subscribing to a false return is three years in federal prison and a $250,000 fine.  In addition, Boyd will be required to pay $105,880 in restitution to the Internal Revenue Service (IRS).  A sentencing date has not been set.

The investigation was conducted by IRS Criminal Investigation.  Assistant U.S. Attorney Lori Walker and Deputy Criminal Chief Assistant U.S. Attorney Katherine Miller are prosecuting.

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