Reggie Cotton, Tax Evasion, TX, 2004

LUFKIN, TX – A Nacogdoches couple is trading mops for prison stripes after being sentenced for deliberately dodging federal taxes. Reggie Cotton, 53, and Deborah Cotton, 57, learned their fate today after pleading guilty to failing to file a federal income tax return for 2004, a blatant disregard for the law that earned them a harsh sentence.

U.S. District Judge Ron Clark handed down a five-month federal prison sentence to both defendants, followed by another five months confined to their homes. The couple will also be forced to cough up $75,320 in restitution to the Internal Revenue Service – money they should have paid in the first place. The Department of Justice, through U.S. Attorney John M. Bales, announced the sentencing, a clear signal that tax evasion won’t be tolerated in the Eastern District of Texas.

Court records reveal the Cottons ran and operated D&R Services, a janitorial cleaning business. In 2004, D&R Services generated a gross income of $207,857. Despite earning over two hundred thousand dollars, the couple deliberately chose to skip filing a federal income tax return, hoping to pocket the cash and avoid their civic duty. The fact that they had previously filed returns for another janitorial venture only underscores the intentional nature of their crime.

The IRS, the agency responsible for collecting taxes and enforcing tax laws, investigated the case, meticulously building a case against the Cottons. Assistant U.S. Attorney Robert L. Rawls skillfully prosecuted the case, presenting the evidence that led to the guilty pleas and subsequent sentencing. This wasn’t a simple oversight; it was a calculated attempt to defraud the government.

Reggie Cotton was ordered to begin his prison sentence in July 2013, surrendering to the U.S. Marshals Service. Deborah Cotton will follow suit in January 2014. The couple’s attempt to skirt the law has cost them their freedom, their money, and their reputations. It’s a harsh lesson learned: in the world of federal crime, the bill always comes due.

This case serves as a stark reminder that even seemingly ‘small’ tax crimes can carry significant consequences. The IRS continues to aggressively pursue tax evaders, and the Department of Justice is committed to prosecuting those who attempt to cheat the system. The Grimy Times will continue to follow this case and report on all federal crimes across the nation.