Matthew Moretz, Tax Evasion, North Carolina 2021

CHARLOTTE, NC – A North Carolina man has been accused of evading taxes on a substantial amount of income, and now faces prison time as a result.

Matthew Moretz, 31, of Taylorsville, N.C., pleaded guilty to one count of filing a false tax return. From April 2010 to March 2011, Moretz collected unemployment income from the North Carolina Division of Employment. However, beginning in or about March 2010 and continuing through in or about 2013, Moretz was self-employed as the owner of MJM Recycling, a scrap metal business.

From tax year 2010 through tax year 2013, Moretz earned additional personal income totaling approximately $529,622.44 that Moretz failed to report on his U.S. Individual Income Tax Returns Form 1040 filed with the IRS. As a result of the unreported taxable income, Moretz had additional tax due and owing of approximately $116,409.38 from 2010 to 2013.

Moretz is currently awaiting sentencing. The case against Moretz began when special agents of the IRS – Criminal Investigation, Charlotte Field Office, pursued those who prepare returns fraudulently, steal and misuse identities, and those who take extraordinary measures to conceal their income in an effort to evade their tax responsibility.

“Our tax system is built on voluntary compliance and tax criminals who do not pay their fair share increase the tax burden on law-abiding taxpayers,” said U.S. Attorney Jill Westmoreland Rose. “My office will prosecute those who try to cheat the tax system at the expense of honest taxpayers who file their returns on time and pay the taxes they owe.”

Other tax crimes have also been prosecuted in the Western District of North Carolina, including those committed by Patrick Emanuel Sutherland and Reuben T. DeHaan. Sutherland was convicted of filing false tax returns and obstructing a federal grand jury investigation, and DeHaan was sentenced to 24 months in prison for tax evasion and possession of an unregistered firearm.

The IRS encourages taxpayers to report any suspicious activity to the IRS Whistleblower Program. Taxpayers should also be aware that tax scams are common during tax season, and should only file their tax returns with a reputable tax professional.

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