Tax Evasion by Kentucky Businessman Who Hid Assets from IRS

A Kentucky construction company owner pleaded guilty to evading payment of $177,634 in federal income taxes due for the tax years 1999 through 2001.

Darrell Mathis, of Warren County, Kentucky, and owner of Tri-State Construction, falsely submitted an IRS Offer in Compromise form in which he concealed his personal assets, including vehicles and boats, and ownership of his business, Tri-State Construction.

Mathis concealed his ownership in the company from the IRS by placing it in the name of a nominee and directing IRS From W-2s not be filed in his name. For the tax years 2005 through 2008, Mathis received about $1,045,327 in income from Tri-State Construction that he concealed from the IRS by not reporting the income on his federal tax returns. The resulting additional tax for 2005 through 2009 was $383,558.

In addition, Mathis purchased real estate for $144,900 in the name of a nominee to hide the purchase from the IRS. In January 2008, he sold this property for $235,000 and purchased another property, again in the name of a nominee. Mathis also purchased a Keystone camper by titling it in a nominee name to conceal his ownership.

He faces up to 25 years in prison and a $500,000 fine.

More Tax Help, IRS News and Tax Relief Tips:

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