Virginia Business Owners Charged with Tax Evasion

Allegedly Used Business Accounts to Evade Paying Their Income Tax Liability

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Law Enforcement

2017-08-15

A federal grand jury in the Western District of Virginia returned an indictment charging two business owners with tax evasion and conspiring to structure currency transactions, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division.

According to the indictment, Jeffrey and Karen Dalton owned Blue Ridge Stainless Inc. (BRS), a subcontracting business that provided labor to renovate large retail department and grocery stores, and operated it out of their home in Hillsville, Virginia. The Daltons allegedly filed their 2009 through 2014 personal tax returns with the Internal Revenue Service (IRS) reporting the income they earned from BRS, but failed to pay the taxes, penalties and interest owed. The indictment alleges that despite an IRS revenue officer repeatedly contacting the Daltons over a period of years about their delinquent taxes and pending IRS liens, they refused to pay their outstanding tax liability, used nominees to conceal their ownership of property and filed false documents with the IRS. After the IRS levied the Dalton’s personal bank accounts, they allegedly used funds from the BRS business bank account to start a cattle business and pay for their children’s wedding expenses.

The indictment also charges Jeffery and Karen Dalton with conspiring to withdraw cash from the BRS business bank account, in increments less than $10,000, to evade federal bank-reporting requirements. According to the indictment, they withdrew more than $250,000 in this piecemeal fashion.

An indictment merely alleges that crimes have been committed and the defendants are presumed innocent until proven guilty beyond a reasonable doubt.

If convicted, Jeffery and Karen Dalton each face a statutory maximum sentence of five years in prison on both the tax evasion and conspiracy charge. They also face a period of supervised release, restitution and monetary penalties.

Source: U.S. Department of Justice