Jewelry Store Owner Jailed for $147,000 Tax Dodge
July 31, 23
(IDEX Online) - The owner of a jewelry store in Minnesota, USA, has been jailed for six months after he admitted dodging $147,000 in tax by submitting a false return.
Bernard James Benavidez, 62, owner of Master Jewelers, in Rochester, has been sentenced after he pleaded guilty in February to one count of making and subscribing a false tax return.
He regularly and intentionally diverted significant portions of Master Jewelers' gross sales into his personal bank accounts to lower his tax liabilities, said prosecutors.
According to court documents, Benavidez also directed some customers to pay him personally for work he completed on behalf of the business.
Criminal investigators from the IRS (Internal Revenue Service) say Benavidez successfully concealed sales worth $432,373 between 2013 and 2017.
Master Jewelers was responsible for paying its own corporate taxes while Benavidez was independently responsible for reporting any salary, wages, or other compensation that Master Jewelers paid to him personally, according to the US Attorney's Office for the State of Minnesota.
Benavidez been sentenced to six months in prison, followed by one year of supervised release.