Seattle – A 70-year-old chartered accountant from Bellevue, Wash., Pleaded guilty today in Seattle U.S. District Court to trying to evade tax, the report said. US Attorney Nick Brown. Steven G. Shimizu, owned and operated a tax return preparation business, S&S CPA Corporation (“S&S Corp.”). In the 2013, 2014 and 2015 tax years, Shimizu admits to hiding income from his business by attributing it to other entities. In this way, he underpaid his taxes by over $ 884,000. Shimizu faces up to 5 years in prison when convicted by U.S. District Judge John C. Coughenour on March 15, 2022.
According to the plea deal, Shimizu admits to using two business entities, Shimizu & Shimizu (“S&S Partnership”) and CS Medical Consultants (“CS Partnership”) to evade tax. During the years in question, the entities had no commercial activity and therefore no income or expense. However, for the 2013 and 2014 tax years, Shimizu allocated the income he earned from his CPA company as income to S&S Partnership. He then created bogus business expenses attributable to S&S Partnership. These expenses reduced the amount of income tax owed. In fiscal years 2013-15, Shimizu used the same pattern with CS Partnership. The scheme hid the CPA firm’s income, and then the creation of bogus business expenses reduced the income taxes owed.
Additionally, in the 2013-15 tax years, Shimizu sought to record personal expenses as business expenses on the CPA company tax returns. Shimizu characterized withdrawals from business accounts as business expenses, but they were actually cash withdrawals for personal benefit, personal insurance, personal legal expenses, and payments to family members.
“Tax professionals are essential to the functioning of our tax system, and the public places the utmost confidence in these professionals to truthfully prepare tax returns,” said Special Agent in Charge Bret. Kressin, IRS Criminal Investigation (IRS-CI), Seattle Field Office. . “When individuals like Mr. Shimizu break that trust by fraudulently filing false tax returns out of greed, they put their clients and the public at risk by undermining that trust. The IRS-CI is constantly committed to investigating those who think they are above paying their fair share.
Attempting to evade or circumvent the tax is punishable by up to 5 years in prison and a fine of $ 100,000. The actual sentence will be determined by Justice Coughenour after reviewing US sentencing guidelines and other statutory factors.
The case was investigated by the Internal Revenue Service Criminal Investigation (IRS-CI).
The case is being pursued by Assistant United States Attorney Michael Dion.