COUPLE CONCEALED INCOME OFFSHORE
Following an investigation by the Internal Revenue Service Criminal Investigation, Michael and Jan Watts pleaded guilty to one count of filing a false tax return.Michael Watts, 60, and Jan Watts, 54, formerly of San Martin, were charged with one count of income tax evasion. In a superseding information, prosecutors also charged the Watts with one count of filing a false tax return.
Under the plea agreement, the Watts pleaded guilty to the charges in the superseding information.
According to the plea agreement, in 1994, Michael Watts performed consulting work under the name of a sole proprietorship, Melbourne Enterprises.
During this period, Jan Watts handled tax matters for herself and her husband. With Michael Watts’ knowledge, she funneled Melbourne’s income through an offshore corporation on Nevis, in the West Indies.
Jan Watts failed to report $92,494.13 in income.
The Watts have agreed to pay $1,000,000 for taxes owed for 1994 and other amounts owed to the IRS.
They each face up to three years in prison and a fine of up to $250,000.
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Tags: false tax return, tax evasion
