Utah Resident Sentenced for Tax Evasion and Filing a False Return
SALT LAKE CITY - Jon Telford McBride of Kaysville, Utah, was sentenced Monday afternoon in U.S. District Court in Salt Lake City to 27 months in prison to be followed by three years of supervised release. He also was ordered to pay $174,684 in restitution.
McBride was convicted of three counts of tax evasion and one count of filing a false federal income tax return following a jury trial in September, Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division announced.
“In today’s economic environment, it’s more important than ever that the American people feel confident that everyone is playing by the rules and paying the taxes they owe,” said John G. Collins, IRS Criminal Investigation Special Agent in Charge of Utah. “Taxpayers deserve our vigilance in the investigation and prosecution of those who choose to file false tax returns and try to evade paying the taxes they owe. This sentence should send a clear message; schemes to evade the payment of taxes are a violation of the federal tax laws and the consequences of such schemes can and will result in jail time.”
The evidence at trial established that McBride prepared and filed a false individual federal income tax return for the year 2005. He failed to report approximately $109,785 in gross income that he received during the 2005 tax year. McBride also willfully attempted to evade his federal income taxes for the 2006, 2007 and 2009 tax years by failing to file an individual federal income tax return, filing a false tax return where he underreported his income by more than $300,000, and filing a false tax return that reported zero income. McBride also used several nominees to hide and conceal his ownership in property and partnerships to keep those assets out of the reach of the Internal Revenue Service (IRS).
Acting Assistant Attorney General Ciraolo commended the special agents of IRS-Criminal Investigation, who investigated the case, and Trial Attorneys Brent Ward of the Justice Department’s Criminal Division and Andrea Kafka of the Tax Division, who prosecuted the case. Acting Assistant Attorney General Ciraolo also thanked the U.S. Attorney’s Office for the District of Utah for their substantial assistance.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.