Murphy John, Filing False Income Tax Returns, California 2022

JOHNSTOWN, Pa. – A brazen tax evasion scheme has come to an end for a Johnstown couple, David J. Murphy and Joyce Murphy.

A federal court has sentenced the duo to a combined four years of probation, with the first 12 months of which they must spend under home detention. Additionally, the couple was ordered to complete 100 hours of community service, pay a hefty $25,000 fine and cough up full restitution, including back taxes, penalties and interest to the Internal Revenue Service. The Murphys will have to pay a total of $140,834 in underpaid income tax owed to the United States.

This case marks the culmination of an investigation by the Internal Revenue Service-Criminal Investigation, which U.S. Attorney David J. Hickton commended for its successful prosecution of the Murphys. Assistant United States Attorney John J. Valkovci, Jr. led the prosecution.

According to evidence presented in court, the Murphys filed individual income tax returns for the calendar years 2008, 2009, 2010 and 2011, under-reporting a staggering $431,073 in taxable income.

U.S. District Judge Kim R. Gibson handed down the sentences, which demonstrate the severity of tax evasion and the importance of truthful reporting to the Internal Revenue Service.

The Murphys’ actions not only cheated the government out of revenue but also set a bad precedent for others. This sentence sends a strong message that tax evasion will not be tolerated and those who engage in it will face the consequences.

The IRS-Criminal Investigation will continue to crack down on those who attempt to skirt the tax system. As this case demonstrates, honesty is always the best policy when it comes to reporting income taxes.

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