Eagle Roofing Boss Admits Tax Dodge

ST. LOUIS, MO – Denver Nichols, owner of Labadie-based Eagle Roofing Co., admitted today to deliberately shortchanging the U.S. government on his taxes. Nichols, facing federal charges, pleaded guilty before United States District Judge John A. Ross, bringing a years-long investigation to a head.

Court documents paint a picture of systematic underreporting. For the tax years 2007 and 2008, Nichols allegedly failed to accurately report the gross receipts of his roofing business. The IRS Criminal Investigation division discovered that in 2007, Nichols reported $1,584,208 in gross receipts on his Schedule C, but actually earned $959,500 more than that. The following year, 2008, saw a similar pattern: reported receipts of $1,111,597 versus actual receipts of $794,680.

Nichols didn’t just misplace a few receipts; the discrepancy amounts to over $1.7 million in underreported income. The government alleges Nichols knowingly submitted falsified returns, delaying filing them for years – the 2007 return wasn’t filed until November 7, 2011, and the 2008 return until December 12, 2012. A delay tactic, perhaps, hoping the IRS wouldn’t notice the missing millions.

The Labadie contractor now faces the consequences. Nichols pleaded guilty to two counts of filing false tax returns. Each count carries a maximum penalty of three years in prison and a $250,000 fine. However, the final sentence will be determined by Judge Ross, taking into account the U.S. Sentencing Guidelines, a complex system designed to ensure consistency in federal sentencing.

The IRS Criminal Investigation division spearheaded the investigation, meticulously tracing the financial discrepancies at Eagle Roofing. Assistant United States Attorney Steven Muchnick is prosecuting the case, representing the U.S. Attorney’s Office. The investigation highlights the IRS’s continued focus on cracking down on tax evasion, even among seemingly small-time operators.

Sentencing is currently scheduled for July 7, 2017. Whether Nichols will actually see the full three years per count remains to be seen, but one thing is certain: dodging taxes is a dangerous game, and today, Denver Nichols is paying the price. Grimy Times will continue to follow this case and report on the sentencing outcome.