Bar Owner Faces Five Years for Tax Evasion
A Tennessee bar owner pleaded guilty to tax evasion and faces up to five years in prison and a $100,000 fine.
According to prosecutors, John H. Rawlings, 70, of New Johnsonville, Tenn., filed a false and fraudulent income tax return for the calendar year 2002. The return claimed Rawlings had no taxable income and owed no taxes during that year when, in fact, he knew that he had approximately $92,358.21 of taxable income from owning the bar. In all, he owed approximately $35,413.44 in income taxes.
Rawlings admitted he kept journals and records in which he recorded the income to the bar and the expenses. However, Rawlings omitted income he received from cover charges while including the expenses for payments he made to the bands that played at the bar. He provided these records to his bookkeeper for the purpose of preparing his income tax returns.
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Tags: Filing Fales Federal Tax Return, tax evasion
