William James Kennedy, Tax Evasion, California 2005

Bay Area resident William James Kennedy, 68, faces serious consequences after pleading guilty to making and subscribing a false tax return, announced United States Attorney Benjamin B. Wagner.

According to court documents, Kennedy, as a financial advisor, touted a variety of tax avoidance schemes to his clients in order to allow them to avoid paying income taxes. He offered his clients the use of corporation “soles” and debt elimination programs, but failed to properly report his own income on his tax returns.

Kennedy also claimed an improper charitable deduction to an entity that was one of his own corporation soles in 2002. This conduct resulted in a tax loss of approximately $627,000 to the United States. As part of his plea agreement, Kennedy will pay restitution to the IRS in this amount.

The investigation into Kennedy's actions was conducted by the Internal Revenue Service, Criminal Investigation. Assistant United States Attorney Mark J. McKeon is prosecuting the case.

Kennedy is scheduled to be sentenced by United States District Judge Anthony W. Ishii on November 24, 2014. He faces a maximum statutory penalty of three years in prison and a $250,000 fine. The actual sentence will be determined at the discretion of the court after consideration of any applicable statutory sentencing factors and the Federal Sentencing Guidelines.

The case against Kennedy serves as a reminder of the importance of honesty and transparency in financial dealings. Tax evasion is a serious crime that can have severe consequences for individuals and businesses.

The United States Attorney's Office will continue to work tirelessly to root out tax evasion and other financial crimes in the Bay Area and across California.

Source: https://www.justice.gov/usao-edca/pr/bay-area-resident-pleads-guilty-tax-evasion