On August 13, United States Attorney Barbara L. McQuade announced that Monique Gray, owner and operator of MO Tax Services in Detroit, had been sentenced to 30 days in prison for filing a false federal income tax return. Gray also owns a trucking company, U&M XSpress, Inc.
Gray pleaded guilty to the charge, which was in connection with under-reporting of gross receipts for the tax year 2008. According to court documents, Gray’s tax business and trucking firm generated substantial income during 2008. Businesses are required under the law to correctly report their gross receipts for a given year, however Gray did not report all of the gross receipts. In fact, Gray’s Form 1040 for 2008 indicated gross receipts of $5,458 on a Schedule C Profit or Loss from Business, when the business actually had receipts of $44,982. She also had gross receipts of more than $122,000 from her trucking company, although she reported only $6,000.
Ultimately, Gray knew when she signed the 2008 Individual Tax Return 1040 form that the information she had provided was false.
In addition to spending 30 days in prison, Gray is required to pay restitution of $102,899 as ordered by U.S. District Judge Paul D. Borman.
Acting Special Agent in Charge Jarod Koopman of the IRS – Criminal Investigation unit said in a release that Gray’s actions were an affront to other business owners and taxpayers who are honest in filing their federal income taxes. He also said that her attempt undermines the tax system, and that the IRS – Criminal Investigation will continue the aggressive pursuit of others who believe they can commit tax fraud and get away with it.
In Michigan, tax fraud and other fraudulent or white collar crimes are punished harshly. Whether an individual is accused of Medicare fraud, bank or mortgage fraud, welfare fraud, or federal tax fraud, it is a highly serious situation which requires the legal support and guidance of a skilled and capable Michigan criminal defense lawyer. The criminal penalties for federal crimes are harsh; your career, reputation, and freedom hang in the balance. Consult with an attorney immediately if you are under investigation or have been charged with tax fraud or any white collar crime.