Yutan man sentenced for false statements on tax return


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Date: March 26, 2021

Contact: newsroom@ci.irs.gov

Acting United States Attorney Jan Sharp announced that Wayne M. Morris of Yutan, Nebraska, was sentenced today in Lincoln by Chief United States District Judge John M. Gerrard for making a false statement on a tax return. Morris was sentenced to 6 months of community confinement and 6 months of home confinement. Morris will also serve 1 year on supervised release. There is no parole in the federal system. Morris was also ordered to pay $257,731 in restitution and a $10,000 fine. Morris paid $165,000 of the restitution order today and was ordered to pay the remainder within 30 days.

Morris opened his business, Roofmasters, in 2001 and began advertising roofing services through Lincoln and Omaha. Roofmasters' name changed during the period of time Morris was running the business. Morris would hire workers to perform the roofing services while he provided estimates to customers, purchased materials and handled customer payments.

The Internal Revenue Service reviewed tax returns filed by Morris and his roofing business and also bank records, both personal and business related. After an examination of all the records, the IRS determined Morris had been claiming far less in gross receipts on his tax returns when compared to financial transactions reflected in the bank account records. Morris had reported very low amounts of earned income on his returns and at one point appeared to qualify for the Earned Income Credit. Additionally, Morris opened a bank account in the Philippines and failed to declare the existence of that account on his filed returns. Morris also did not report the interest accrued on the money deposited into the foreign account. In all, the IRS determined that between 2000 to 2015 Morris could not have accumulated the amount of cash in his Philippines' account through the reported earned income and receipts from his roofing business.

"Honest taxpayers have been reassured today that no one is above the law. All income is taxable and is to be reported to the IRS. Mr. Morris had a long pattern of cashing customer checks and dealing in cash, which he did not report on his tax returns," said David Talcott, Acting Special Agent in Charge of the IRS Criminal Investigation division in the St. Louis Field Office.

This case was investigated by the Criminal Investigation Division of the Internal Revenue Service.