Business owner admits tax improprieties
Jan 29, 2013 at 9:24 PM
RICHMOND, Va. — A resident of both Jonesborough, Tenn., and Fredericksburg could face criminal sentencing after he admitted failing to collect and pay over taxes and failing to file an income tax returns for several years, according to a court document from the U.S. District Court for the Eastern District of Virginia.
According to the document, Jimmy Holland Boyd, the owner, operator and president of Spring City Company Excavating, allegedly failed to collect, truthfully account for and pay the Internal Revenue Service as well as failing to issue IRS forms –– W2 or 1099 –– to his employees.
After receiving a gross personal income of $567,428.69 in 2007, Boyd was also required by law to file a personal tax return to the IRS stating items of his gross income, including any deductions and credits, and failed to do so.
Boyd lived in Jonesborough until 2007 and participated in a real estate development project there building high-end homes. Boyd quit claimed the property he owned and took out a loan against the property, which generated an estimated $300,000 in capital gains.
The capital gains should have been recorded on his 2007 personal tax return and Boyd re-financed the property in 2009, where he claimed a monthly income of $14,500 a month and attached copies of his 2007 and 2008 IRS income tax returns, which were never filed.
The total tax loss from 2005 to 2009 was placed at $350,000, and both Boyd and the court agreed to the amount.
He could possibly face a total of six years in prison, a $350,000 fine and four years of supervised release.