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Sedalia Man Sentenced to Three Years in Federal Prison for Tax Evasion
A Sedalia, Missouri man has been sentenced to three years in federal prison without parole for tax evasion. Duane Dixon, 59, was sentenced by U.S. District Judge Gary A. Fenner for failing to file tax returns from 1996 through 2010.
According to court documents, Dixon hired a return preparer in 2010 to prepare tax returns for 2005 to 2010. However, he provided the return preparer with false and incomplete information, resulting in a tax due and owing of $237,821 for tax years 2005 to 2010. The total tax loss, including penalties and interest, was $639,733.
The IRS sent Dixon numerous notices of enforcement collection actions between August 2003 and July 2015. However, he filed bankruptcies when the IRS was attempting to assess or collect his taxes, which were later dismissed by the bankruptcy court.
Dixon was also found to have formed Dixon Builders LLC in February 2012 and used it to hide his assets. He bought and sold real estate, purchased a boat and vehicles, and told an IRS Revenue Officer that he had no personal or business bank accounts and no business such as an LLC. He was found to have transferred properties to his adult children to avoid paying his outstanding tax liability.
Assistant U.S. Attorney Patrick D. Daly prosecuted the case, which was investigated by IRS-Criminal Investigations. The court also ordered Dixon to pay $639,733 in restitution to the IRS.
During the course of the investigation, it was discovered that Dixon had continued to spend money on extravagances such as personal vehicles and motorcycles rather than paying his outstanding tax liability. The case serves as a warning to those who attempt to evade paying their taxes and the consequences that come with it.
This case is a prime example of the IRS’s commitment to pursuing those who attempt to evade paying their taxes. The agency will continue to work tirelessly to identify and prosecute individuals who attempt to cheat the system.
Key Facts
- State: Missouri
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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