Steven Headden Young, 55, of St. Petersburg, Florida, is headed to federal prison for 21 months after being convicted of a multi-year tax evasion scheme that cost the U.S. government more than half a million dollars. U.S. District Judge Steven D. Merryday handed down the sentence in Tampa, ordering Young to pay full restitution of $509,455 to the Internal Revenue Service and to file corrected tax returns for the years 2007 through 2011.
Court documents reveal Young, who prepared his own returns, fabricated business expenses to erase his taxable income. Operating under a real estate business, he invented a sham corporation allegedly based in the Dominican Republic and submitted false invoices and a forged lease agreement to backstop his claims. These phony deductions were filed on his Schedule C forms, allowing him to report little to no taxable income during the five-year period.
But the deceit didn’t stop there. Young falsely claimed head-of-household (HOH) status on his returns, a filing status that grants greater tax benefits than other categories. At the time, he was married and living with his wife—making him ineligible. By lying about his marital status and declaring himself single, Young manipulated the system to reduce his tax liability and inflate his credits.
When the IRS launched an audit, Young escalated his criminal conduct. He attempted to obstruct the investigation by interfering with a federal subpoena issued to Bank of America. He forged an official IRS letter and sent it to BOA, redirecting confidential financial records to an address he controlled—one he had opened under the name of an actual IRS employee. The stunt was a brazen attempt to sabotage the audit and hide his tracks.
The case was investigated by Internal Revenue Service – Criminal Investigation and the Treasury Inspector General for Tax Administration, both of which specialize in rooting out financial fraud against the federal government. The probe peeled back layer after layer of deception, exposing a calculated, years-long effort to defraud the American taxpayer.
Assistant United States Attorney Kelley C. Howard-Allen prosecuted the case, securing a conviction that holds Young accountable not only for tax evasion but for undermining the integrity of the nation’s tax system. His 21-month sentence sends a clear message: falsifying returns, forging documents, and tampering with federal investigations will be met with federal prison time.
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Key Facts
- State: Florida
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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