Christine Hill, Tax Evasion, California 2023

Christine Hill, 54, of Vallejo, California, pleaded guilty to tax evasion in the United States District Court for the Northern District of California, announced United States Attorney Brian J. Stretch and Internal Revenue Service, Criminal Investigation, Special Agent in Charge Michael T. Batdorf.

Hill, the Director of Operations at John Compagno, MD, Inc., with offices in Hercules, California, knowingly and willingly filed a fraudulent 2010 U.S. Individual Income Tax Return, Form 1040, according to the plea agreement.

According to the plea agreement, Hill collected time sheets and processed paychecks for employees, including herself. She acknowledged that bonus payments are subject to federal income tax withholding and processed numerous bonus checks for herself and other employees.

However, Hill admitted she received additional year-end bonus payments from at least 2003 through 2011, which were paid to her directly and not processed through the payroll account. These payments were not reported on IRS Forms W-2 and therefore not reported to the IRS.

In addition, Hill’s spouse received payments from John Compagno, MD, Inc. for repairs, maintenance, and construction work he did for the company for the period of 2004 through 2011. John Compagno, MD, Inc. did not issue Forms 1099 for those services.

Hill omitted income from additional bonuses and payments to her spouse in the amount of $122,391, resulting in additional tax due of $35,566. Hill was charged with tax evasion, in violation of 26 U.S.C. § 7201, on March 1, 2017.

Pursuant to the plea agreement, Hill pleaded guilty to the charge in the one-count information. Judge Richard Seeborg scheduled a hearing for sentencing on June 20, 2017. The maximum sentence for a violation of 26 U.S.C. § 7201 is five years in prison and a fine of $250,000.

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