Gary T. Petersen, Federal Income Tax Evasion, Illinois 2016

Grimy Times has learned that Gary T. Petersen, 55, of Crystal Lake, Illinois, has pleaded guilty to federal income tax evasion in Rockford, Illinois.

According to court documents, Petersen was the president and sole shareholder of Petersen Sealcoating and Paving, Inc., a business located in Crystal Lake. In 2016, Petersen deposited checks received by the company into bank accounts held by family members and other accounts he controlled.

Petersen also cashed checks received by the company and personally retained the cash, with the intention of excluding the money from income reported by the company to the IRS. On March 23, 2017, Petersen caused a false U.S. Individual Income Tax Return Form 1040 to be filed, stating that he and a co-filer had taxable income of $75,028 and that the amount of tax due was $10,919, when Petersen knew he and his co-filer had taxable income of approximately $1,174,261, and the additional amount of income tax due was approximately $402,431.

Petersen also admitted to underreporting the company’s income and his personal income on tax forms for the calendar years 2012, 2013, 2014, and 2015, resulting in additional tax due of $33,216 in 2012, $82,388 in 2013, $146,853 in 2014, and $356,230 in 2015.

Petersen faces a maximum sentence of five years’ imprisonment and a fine of up to $250,000 or twice the gross gain or gross loss resulting from the offense, whichever is greater.

The actual sentence will be determined by the U.S. District Court, guided by the Sentencing Guidelines. Sentencing is set for February 17, 2021, at 10:30 a.m.

The guilty plea was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois, and Todd Martin, Acting Special Agent-In-Charge of the IRS Criminal Investigation Division in Chicago.

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