Scott C. Cole, Tax Evasion, Indiana 2018

Brownsburg man charged with tax evasion in Hendricks County, Indiana

Alleged to owe over $1 million in taxes

INDIANAPOLIS - Scott C. Cole, 53, was indicted on two counts of tax evasion in the Southern District of Indiana.

Cole allegedly attempted to evade and defeat tax payments by opening bank accounts with artificial company names and directed payment for services he rendered to the same artificial companies. He paid personal expenses through third-party business accounts, dealt extensively in cash and filed false 1040 tax returns understating taxable income.

The indictment alleges that on April 11, 2008, the IRS mailed a notice to Cole and his wife stating they omitted approximately 1.2 million of income and approximately $1.3 million in self-employment income from their 2001 tax return. The IRS assessed an income tax deficiency of $556,187 and a fraud penalty of $417,140. Further, the tax court ruled that Cole’s 2002 tax return was deficient by nearly $54,000, assessing a penalty of $40,458 in addition to the $14,261 that was due.

Cole disputed his tax liability but the Federal Tax Court and the U.S. Court of Appeals affirmed the IRS assessment.

Cole had his initial appearance before a magistrate judge yesterday and was released on GPS monitoring and must follow a strict curfew. His trial date is set for March 19, 2018.

According to Assistant United States Attorney James M. Warden, Cole faces up to five years’ imprisonment and a fine of up to $250,000 for each count if convicted as well as full restitution to the government.

An indictment is only a charge and not evidence of guilt. All defendants are presumed innocent until proven otherwise in federal court.

The case was investigated by the Internal Revenue Service Criminal Investigation.

Source: https://www.justice.gov/usao-sdin/pr/hendricks-county-man-indicted-tax-evasion-charges