TAX NEWS - June 2010

San Diego Tax: Sentencing Today For Man Accused Of Tax Evasion

SAN DIEGO -- The owner of a Fallbrook plastering business who pleaded guilty to tax evasion for hiding about $750,000 in income from a remodeling job is expected in a downtown San Diego courtroom for sentencing Friday.

James Matthews, the owner of Matthews Plastering Inc., admitted depositing about $1.9 million in gross receipts from his side business into his personal bank account, said Assistant U.S. Attorney Joseph Orabona.  

Matthews, 59, failed to report at least $748,597 in additional income he earned from his side business in tax years 2003, 2004, 2005 and 2006, the prosecutor said. As a result, the defendant willfully evaded paying $133,503 in income tax due to the Internal Revenue Service, according to Orabona.