Also serving the communities of De Luz, Rainbow, Camp Pendleton, Pala and Pauma

Fallbrook man pleads guilty to tax evasion

LOS ANGELES - United States Attorney Karen Hewitt has announced that James Matthews, 59, owner of Matthews Plastering, Inc. in Fallbrook, pled guilty on March 11, 2010 before United States Magistrate Judge William McCurine, Jr. to one count of tax evasion, in violation of Title 26, United States Code, Section 7201, for tax year 2004. The plea is subject to final acceptance by United States District Court Judge Jeffrey T. Miller before or at the time of sentencing.

According to the plea agreement, Matthews admitted he owned and operated a “side business,” whereby he performed remodeling work. Matthews admitted he deposited approximately $1.9 million in gross receipts from his “side business” into his personal bank account. Matthews admitted he failed to report at least $748,597 in additional income he earned from his “side business” in tax years 2003, 2004, 2005, and 2006. As such, Matthews admitted he willfully evaded and defeated $133,503 in income taxes due and owing to the Internal Revenue Service by failing to report $748,597 in taxable income from his “side business” on his joint individual tax returns in tax years 2003, 2004, 2005 and 2006.

Pursuant to his plea, Matthews signed a written closing agreement with the Internal Revenue Service concerning any outstanding tax liability for tax years 2003, 2004, 2005 and 2006, including civil fraud penalties and interest. Matthews agreed to pay the taxes due and owing, including applicable penalties and interest, prior to sentencing. In addition, Matthews also agreed to pay a criminal fine, which will be determined at the time of sentencing.

Matthews is scheduled to appear before United States District Judge Jeffrey T. Miller for sentencing on June 4, 2010. The investigation of James Matthews was conducted by agents in the San Diego Post of Duty for the Internal Revenue Service – Criminal Investigation Los Angeles Field Office.

 

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