Date: March 2, 2020
David Tarrence of Lincoln, Nebraska was sentenced today by Senior United States District Judge Richard G. Kopf for filing a false tax return. Tarrence was sentenced to 2 years of probation with 6 months of home confinement.
During the 2013 calendar year, Tarrence ran a business known as Local Movers. Tarrence reported business income and expenses on his U.S. Individual Tax Return as a single filing status.
Investigation determined that David Tarrence knowingly provided the tax preparer summary income figures which grossly understated his gross receipts. On or about April 15, 2014, Tarrence filed a Form 1040 U.S. Individual Income Tax Return for the 2013 tax year. Tarrence signed the return under penalty of perjury and filed the return with the Internal Revenue Service. On the return, Tarrence reported on line 1 of Schedule C, Profit or Loss From Business, gross receipts from the operation of his business in the amount of $161,541. In fact, Tarrence well knew, his gross receipts from his moving business represented by deposits and/or credits to his bank account during the 2013 tax year were approximately $429,038. The difference largely represented cash withdrawals by Tarrence from his business bank account. Tarrence has claimed that the cash withdrawals were used to pay labor expenses related to the income generated by business. However, Tarrence did not list those payments as labor expenses and did not otherwise obtain receipts or issue tax-related documents to those individuals. In doing so, Tarrence willfully failed to accurately report his total income and expenses in a manner consistent with his business practices. This manner of underreporting of income and failure to list expenses was material to the preparation, determination, and accuracy of the income tax owed by defendant for the 2013 calendar year.
"The ultimate victims of tax fraud are the people of the United States – those honest taxpayers who diligently file tax returns each year," said Steven Slazinik, Acting Special Agent in Charge of IRS Criminal Investigation. "We all pay when others cheat the government."
This case was investigated by the Internal Revenue Service.