A 1099 Form Blows the Gasket for Auto Repair Shop Owner
Michael Powers, owner of Powers Auto Repair in New Cumberland, PA, pled guilty in federal court to charges of filing a false income tax return.
The IRS was tipped off to the false return when they received a 1099-K, which is filed by entities that process credit card payments on behalf of a business.
Powers would deposit the cash and checks received into his business account, but would have all of his credit card income directed to his personal account.
On his 2010 income tax return, Powers underreported his income by $238,381, which resulted in a loss to the IRS of $42,774. In his plea agreement with the court, Powers will pay that amount as restitution along with an additional $26,198 for underreporting his income on his 2012 return.
About the Author
Gregory McCauley, Esq.
Founder · DE · Admitted in Pennsylvania, New Jersey, New York
For more than three decades, Gregory McCauley has been a trusted advocate for clients facing civil and criminal tax challenges. As the founder of McCauley Law Offices in Chadds Ford, Pennsylvania, Gregory has built a national practice that represents individuals, families, professionals, and closely...
