On Monday, a federal grand jury in the Western District of Virginia returned an indictment against two business owners. The indictment charges the duo with tax evasion and conspiring to structure currency transactions. The announcement was made by Stuart M. Goldberg of the Justice Department’s Tax Division.
According to the indictment, Karen and Jeffrey Dalton owned and operated Blue Ridge Stainless Inc., which is a subcontracting business that provides labor for the renovation of large retail buildings and grocery stores. The company was operated out of the couple’s home in Hillsville, Virginia.
The Daltons are accused of filing their personal tax returns from 2009 to 2014. The returns submitted to the IRS reported their income from BRS. However, the duo is accused of failing to pay the taxes, penalties, and interest owed.
Despite being contacted by an IRS revenue officer numerous times, the indictment suggests that the couple refused to pay their outstanding taxes. Instead, it is alleged that they used nominees to hide property that they owned and filed false documentation with the IRS. The IRS eventually levied the Dalton’s personal bank accounts.
Then, it is alleged that the couple used funds from their business bank account to create a cattle business and to pay for their children’s wedding. The indictment also charges the couple with conspiring to withdraw money from the bank account of Blue Ridge Stainless in an attempt to evade federal bank-reporting requirements. Over a period of time and while keeping increments less than $10,000, the couple allegedly withdrew more than $250,000 from the business bank account.
At this point in time, the defendants are innocent until proven guilty. Jeffery and Karen face a maximum sentence of five years in prison for both the tax evasion and conspiracy charge should they be convicted. They will also likely face supervised release, restitution and monetary penalties upon conviction.