Steven Kern, Tax Evasion, Michigan 2013

A Marine City man has pleaded guilty to a string of tax-related crimes, including filing false corporate tax returns and failing to file individual tax returns, according to a press release from the Justice Department and Internal Revenue Service (IRS).

Steven Kern, 67, operated the Kern Chiropractic Center in Marine City and diverted cash and check payments from the business for his own personal use, the indictment alleges.

Kern, who failed to file individual tax returns for tax years 2003 to 2010, despite earning more than $1.2 million in gross income during that time period, told IRS-Criminal Investigation Special Agents that he believed signing and filing a completed tax return was a violation of his constitutional rights, according to filed court documents and court proceedings.

The indictment alleges that Kern filed false corporate tax returns, resulting in a loss of tax revenue to the government.

Each count of filing a false corporate tax return carries a maximum penalty of three years in prison and a $250,000 fine, while each count of failing to file an individual tax return carries a maximum penalty of twelve months imprisonment and a fine of up to $100,000.

Kern is scheduled to be sentenced on April 30, 2013.

The case is being prosecuted by Trial Attorneys Mark McDonald and Jeff Bender of the Tax Division, with the investigation conducted by IRS Criminal Investigation.

Kern’s plea deal marks a significant victory for the government in its efforts to combat tax evasion and financial crimes in Michigan.

According to the indictment, Kern operated the Kern Chiropractic Center from Marine City and diverted cash and check payments from the business for his own personal use.

The indictment alleges that Kern failed to file individual tax returns for tax years 2003 to 2010, despite earning more than $1.2 million in gross income during that time period.

Kern told IRS-Criminal Investigation Special Agents that he believed signing and filing a completed tax return was a violation of his constitutional rights, according to filed court documents and court proceedings.

The Kern Chiropractic Center, operated by Steven Kern, is located in Marine City, Mich.

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