SPRINGFIELD, Ill. (WAND) – Illinoisans are reminded they could go to prison for falsifying tax returns and evading paying taxes.
The reminder comes from U.S. Attorney John C Milhiser’s office Wednesday, just days before the American tax filing deadline on April 15. Milhiser sent a press release detailing recent arrests and convictions for people who committed those crimes.
On Monday, Osaka Japanese Restaurant owner Chu Chuk Cheung pleaded guilty to filing false tax returns. He took money from the Springfield restaurant's business account and used it on personal investments, then didn’t tell his personal accountant about the added income from Osaka. As a result, the accountant filed false returns on Cheung’s behalf in 2012 and 2013.
Cheung will be sentenced on Aug. 2 and faces as much as five years in prison.
“Taxpayers thinking about participating in fraudulent tax schemes, such as failing to report all forms of income or falsifying deductions should take a good look at the serious and detrimental consequences of taking the next step,” said Special Agent in Charge Gabriel Grchan of the IRS Criminal Investigation Division. “Those who might consider preparing false and fraudulent tax returns should be aware of the extremely negative consequences that could result in prison time and large tax bills, including substantial fines, interest and penalties.”
The press release also talks about what a U.S. district judge called a “remarkable conspiracy” for tax fraud, in which Chicago man Clifton “Ty” Robinson and other defendants were sentenced to prison in 2018. The scheme resulted in over $1.8 million in refunds collected from more than 300 false tax returns. The conspirators were ordered to pay $1.2 million in restitution, and Robinson was sentenced over eight years behind bars.
In addition, former Thermionics business owner and Springfield man Gregg Harwood was sentenced to 1 ½ years in prison in July 2018 for failing to report over $1.15 million in earnings to the IRS. The earnings should have been filed in 2008, 2009 and 2010.
