Gary Peterson, owner of Peterson Sealcoating and Paving in Illinois, pleaded guilty to tax evasion for depositing business checks into joint bank accounts with family members, and in another family member’s account that he controlled. He also cashed company checks and excluded the funds from his tax returns by concealing the income from his accountant.
For 2016 Peterson reported income of $75,028 with a tax due of $10,919. In reality his taxable income was $1,174,261 and the tax due was $402,431.
Peterson admitted that he under reported his income during 2012-2015 that would have resulted in additional tax due of $33,216 in 2012, $82,388 in 2013, $146,853 in 2014 and $356,230 in 2015.
He faces a maximum sentence of five years in prison and a fine of up to $250,000, plus restitution and penalties.