Joseph A. Masso, $5M Tax Fraud, Tyler TX, 2023

TYLER, Texas – In a stunning turn of events, 64-year-old Joseph A. Masso from Athens, Texas, has pleaded guilty to federal income tax violations, marking the culmination of a years-long investigation by the Internal Revenue Service (IRS).

According to U.S. Attorney John M. Bales, Masso was charged with making and subscribing to a false tax return for 2011 under 26 U.S.C. §7206(1). The court heard that Masso founded Lone Star Western & Casual LLC in December 2007, operating retail clothing stores across Athens, Corsicana, and Waxahachie, Texas.

Between 2009 and 2011, the defendant is accused of willfully understating the gross receipts for these businesses on his IRS Form 1040 Schedule C by over $5 million. This deceitful maneuver resulted in a false tax liability reduction of approximately $950,000 for the three-year period.

At sentencing, Masso faces up to three years imprisonment. He has already agreed to pay restitution exceeding $900,000 to the IRS and a civil fraud penalty surpassing $450,000. In addition, he stands to forfeit $800,000 to the United States following the execution of federal seizure warrants.

This case was meticulously investigated by the Internal Revenue Service-Criminal Investigation and prosecuted by Assistant United States Attorney Frank Coan. It serves as a stark reminder of the consequences that come with financial deceit at the federal level.

As the justice system moves forward, Masso’s actions continue to cast a long shadow over small-town Texas businesses and the integrity of the tax system.