John Kieran Hynes, Tax Fraud, California 2005

San Anselmo contractor, John Kieran Hynes, has pleaded guilty to a serious crime. Hynes, 45, of San Anselmo, California, was charged with four counts of filing a false tax return, but pleaded guilty to just one count.

According to court documents, Hynes was the owner of Newtown Construction in 2005. He admitted to depositing check payments from contracted construction services into his business bank account, cashing the entire amount, or cashing a portion of the check and depositing the remainder into his business account. This resulted in 'less-cash withdrawals' that Hynes did not report to his bookkeeper.

Hynes' bookkeeper relied on the deposited amounts shown on his monthly bank statements to determine his gross business receipts in 2005. However, Hynes intentionally did not tell his bookkeeper about the less-cash withdrawals, which resulted in an understatement of gross receipts.

Hynes' 2005 tax return showed a significant discrepancy. He knowingly failed to report additional gross receipts of $214,595 earned by Newtown Construction, resulting in a tax loss to the United States of $66,524.

The maximum statutory penalty for each count of making and subscribing to a false income tax return, in violation of Title 26, U.S.C § 7206(1), is three years in prison and a fine of $250,000. However, any sentence following conviction would be imposed by the court after consideration of the U.S. sentencing guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.

The prosecution is the result of an investigation by the Internal Revenue Service, Criminal Investigation. Special Assistant United States Attorney Charles Parker and Assistant United States Attorney Thomas Moore are prosecuting this case.

Hynes is currently awaiting sentencing. His plea agreement ensures that he will face the consequences of his actions and will be held accountable for his crimes.

Source: https://www.justice.gov/usao-ndca/pr/san-anselmo-contractor-pleads-guilty-tax-fraud