Ronald McPhail, Filing a False Tax Return, Massachusetts 2021

BOSTON – In a shocking case of tax evasion, a New Hampshire roofing contractor, Ronald McPhail, 53, of Windham, N.H., was sentenced today in federal court in Boston, Massachusetts, to one year and one day in prison and one year of supervised release for filing a false tax return in connection with failing to report income from his roofing and siding business to the Internal Revenue Service (IRS).

McPhail pleaded guilty to one count of filing a false tax return on June 8, 2021. He was ordered to pay a fine of $10,000 and restitution in the amount of $708,494 to the IRS. This staggering amount represents the unpaid income taxes McPhail owed after he failed to report more than $7.1 million in revenue and approximately $2.43 million in income from his business on his federal tax returns for tax years 2014 through 2019.

To conceal his scheme, McPhail cashed customer checks without first depositing them and withheld information concerning these checks and other business revenues from his tax preparers. Additionally, McPhail concealed his income by requesting payment from his customers in several sequentially numbered checks in amounts less than $10,000 and then cashing them at different bank branches on different days.

Assistant U.S. Attorney Seth B. Kosto, Deputy Chief of Mendell’s Securities, Financial & Cyber Fraud Unit, prosecuted the case. Acting United States Attorney Nathaniel R. Mendell and Joleen D. Simpson, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston, made the announcement today.

The case highlights the importance of honesty in tax reporting and the severe consequences of failing to do so. McPhail’s actions not only cheated the IRS out of millions of dollars but also undermined the integrity of the tax system. His sentence serves as a reminder that tax evasion will be prosecuted to the fullest extent of the law.

The U.S. Attorney’s Office for the District of Massachusetts reminds the public that tax evasion is a serious crime with severe penalties. If you or someone you know is suspected of tax evasion, report it to the authorities immediately.

Related to this case, the IRS provides resources for those who want to report suspected tax evasion or seek help with their tax obligations. Visit the IRS website for more information.

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