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Justice News

Department of Justice
U.S. Attorney’s Office
Western District of Kentucky

FOR IMMEDIATE RELEASE
Tuesday, September 15, 2015

Clinton County, Kentucky, Man Sentenced For Filing False Tax Returns

Failed to report earnings and pay income taxes on $386,183.67 during a six year period and overstated business expenses of $581,519.91                                                                                

BOWLING GREEN, Ky. – A Clinton County, Kentucky, businessman and oil driller was sentenced by U.S. District Judge Greg N. Stivers to six months in prison and ordered to pay restitution of $283,385 (the tax due) to the Internal revenue service for failing to report approximately $386,183.67 in income and royalty income during a six year period and for overstating business expenses of $581,519.91 announced United States Attorney John E. Kuhn, Jr. There is no parole in the Federal Court system.

Further, Judge Stivers yesterday ordered Steven L. Burchett, age 51, to pay for the costs of his incarceration and 1 year of supervised release to follow his release from prison.  Finally, Stivers imposed a fine of $10,000 per count of conviction for a total of $60,000.   During the sentencing hearing, the evidence established that between 2006 to 2011, Burchett partially paid for a home and driveway with income for which he did not pay taxes.  In addition, Burchett deducted the building of his home and driveway as business expenses.  Burchett deducted multiple cash withdrawals as business expenses.  Finally, evidence was introduced at the hearing that Burchett owned several luxury automobiles including a Dodge Viper, Cadillac Escalade, and Cadillac XLRV that he fraudulently deducted as a business expenses

Previously, Burchett admitted to willfully making and subscribing U.S. Individual Tax Returns, for the calendar years 2006 through 2011,which were written under the penalty of perjury and filed with the Internal Revenue Service, (IRS) and included information he did not believe to be true and correct.

Specifically, on October 11, 2008, Burchett filed a U.S. Individual Tax Return for calendar year 2006, with the IRS, in which he failed to report approximately $224,735.76 of additional income on Form 1040 line 22.

On October 8, 2008, Burchett filed a U.S. Individual Tax Return, for the calendar year 2007, with the IRS, in which he failed to report approximately $27,003.91 of additional income.

On October 15, 2009, defendant Burchett filed a U.S. Individual Tax Return, for the calendar year 2008, with the IRS, and overstated approximately $41,394 in business expenses and failed to report royalty income of approximately $18,236 and understated approximately $56,895 in additional income.

On April 15, 2010, Burchett filed a joint U.S. Individual Tax Return, for the calendar year 2009, and overstated approximately $90,650 in business expenses and failed to report approximately $38,323 in royalty income and understated approximately $123,225 in additional income.

On April 15, 2011, Burchett filed a joint U.S. Individual Tax Return, for the calendar year 2010, and overstated approximately $305,564 in business expenses and failed to report approximately $64,490 in royalty income and understated approximately $360,380 in additional income.

On April 15, 2012, Burchett filed a joint U.S. Individual Tax Return, for the calendar year 2011, and overstated approximately $72,050 in business expenses and failed to report approximately$74,778 in royalty income and understated approximately $135,611 in additional income..

If convicted at trial, Burchett could have been sentenced to three years in prison on each of the six charges for a total of eighteen years, a total fine of $1,500,000., and a period of up to one year of supervised release.

This case was prosecuted by Assistant United States Attorney Joshua Judd and was investigated by the Criminal Investigation Division of the Internal Revenue Service.

Topic(s): 
Financial Fraud
Updated September 15, 2015