Robert Watson, Tax Fraud, Salt Lake City UT, 2023

SALT LAKE CITY – Robert Watson, 54, and Marie Watson, 52, of North Ogden, Utah, are facing the music after pleading guilty to federal tax fraud charges related to their operation of Teazers Sports Bar & Grill in Ogden. The couple systematically skimmed cash from the business, failing to report substantial income to the IRS, and now face potential prison sentences.

U.S. Attorney David B. Barlow for the District of Utah and Paul A. Camacho, Special Agent in Charge of the Internal Revenue Service-Criminal Investigation (IRS-CI) Las Vegas Field Office, announced the guilty pleas Wednesday. The Watsons’ scheme involved deliberately concealing cash income generated from “cover charges” at the door of Teazers, as well as revenue from pool tables and video games. They then actively misled their tax preparer, filing returns that drastically understated their true earnings.

Robert Watson pleaded guilty to two counts of filing false tax returns – one for the corporate entity, Teazers, and one personal return. He’s looking at a maximum penalty of three years in federal prison and a $100,000 fine. Marie Watson copped to one count of filing a false personal tax return, with the same potential three-year sentence and $100,000 fine looming. Sentencing is scheduled for January 10, 2014.

The indictment revealed the scheme centered around tax year 2007, but investigators believe the underreporting spanned multiple years. Publicly filed documents indicate Robert Watson could owe the IRS as much as $221,290 in back taxes, while Marie Watson’s tax liability could reach $114,942. The final amount owed will be determined at sentencing, meaning the couple’s financial woes are far from over.

The IRS-CI Las Vegas Field Office spearheaded the investigation, digging into the bar’s finances and uncovering the deliberate efforts to evade taxes. This wasn’t a simple oversight; it was a calculated attempt to defraud the government, enriching the Watsons at the expense of honest taxpayers.

Assistant U.S. Attorney Jason R. Burt is prosecuting the case for the District of Utah. This conviction serves as a stark warning: hiding income from the IRS isn’t a victimless crime, and those who attempt it will be held accountable. Expect more aggressive investigations into similar schemes as the IRS cracks down on tax evasion across the country.