A registered nurse anesthetist in Virginia faces up to three years in prison and fines of up to $250,000 after pleading guilty to filing a false income tax return.
Steven R. Grose, 51, of Lebanon, Va., reported his business income and expenses through a subchapter S corporation, which allows the business profit or loss to flow through to the individual taxpayer.
Grose falsely overstated the corporation’s business expenses, underreporting the corporation’s profit. The understated profit, in turn, resulted in individual tax returns which falsely understated taxable income for Grose and his wife.
Grose reported net losses from the S corporation on his 2005 through 2009 tax returns when he had actually had net income from the corporation each year ranging from $60,640.25 to $234,516.01. As a result, Grose actually owed taxes totaling $233,744.00 for the five-year period.
As part of his plea agreement, Grose agreed to pay more than $840,000.
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