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Businessman Sentenced to Federal Prison for Long-Term Tax Evasion
A Wyoming man is headed to federal prison after dodging income taxes for nearly a decade, in a scheme that left the IRS short hundreds of thousands of dollars.
James M. Alexander, a resident of Gillette, WY, was sentenced on June 17, 2025, to 12 months in federal prison and two years of supervised release for committing federal tax evasion and related fraud.
According to federal prosecutors, Alexander consistently underreported his income and submitted false tax returns, depriving the government of its fair share while collecting public disability benefits on the side. The court ordered him to pay $409,422.28 in restitution and a $200 special assessment fee. He is scheduled to begin serving his sentence on August 4, 2025.
Tax Evasion at the Core: Years of Underreporting
This case centers on one key offense: systematic tax evasion. Alexander earned substantial income from construction and remodeling work, but intentionally concealed it from the IRS for nearly nine years.
From 2016 to 2024, he worked for various clients and collected over $330,000 in payments—but failed to properly disclose this income to tax authorities. Rather than pay what he owed, Alexander filed false returns and manipulated his filings to appear compliant.
This wasn’t a bookkeeping error. It was a calculated effort to avoid income tax liability year after year.
The IRS Doesn’t Forget
Alexander’s long-running tax deception didn’t go unnoticed. Eventually, his activity drew the attention of IRS Criminal Investigation (IRS-CI), the IRS’s elite law enforcement division.
IRS-CI agents used:
- Financial audits
- Income tracking
- Bank records and employer data
…to expose the truth behind Alexander’s tax returns. They discovered that while he was reporting partial or no income, he was in fact earning and spending significantly more.
And once IRS-CI builds a case, the results are rarely in the taxpayer’s favor, they have a 90% conviction rate.
Disability Benefits Played a Supporting Role
Alongside his tax evasion, Alexander had been collecting federal disability payments through the U.S. Railroad Retirement Board (RRB), based on his previous employment at BNSF Railway.
These benefits are meant for individuals who are totally and permanently disabled. Alexander had agreed to notify the RRB if his health improved or if he began working again—conditions that would disqualify him from continuing payments.
However, he withheld the truth: that he was physically active and running a construction business on the side. While this component added weight to the charges, the core issue remained his attempt to avoid federal tax obligations.
The case was also investigated by the Railroad Retirement Board Office of Inspector General.
What Federal Prosecutors and Investigators Had to Say
Acting U.S. Attorney Stephanie Sprecher emphasized the impact of Alexander’s actions:
“The defendant’s actions defrauded the IRS and the RRB, while honest taxpayers carried the burden. This case is about accountability and fairness.”
Amanda Prestegard, Special Agent in Charge of IRS-CI Denver, added:
“This sentence reinforces our mission: to hold accountable those who lie on their taxes, abuse government programs, and dodge their legal obligations. No one is above the law.”
The case was also covered by the U.S. Department of Justice.
Why This Matters: Tax Evasion is a Business Killer
Whether you’re self-employed, a contractor, or run a small business, underreporting income and skipping taxes isn’t just a mistake. It’s a felony.
Alexander’s downfall was not paying taxes on money he clearly earned. The disability benefits made it worse—but the primary crime was refusing to pay the IRS while hiding behind manipulated returns.
Warning Signs You Might Be Headed Toward the Same Trouble
You could be at risk of IRS prosecution if:
- You’ve filed false or incomplete returns
- You’re not reporting all income from cash jobs, gigs, or side businesses
- You haven’t filed in multiple years
- You’re using exemptions or deductions you don’t qualify for
- You’ve ignored IRS letters or audit notices
Tax evasion doesn’t have to involve millions of dollars—consistent underreporting is enough to trigger an investigation.
What To Do If You’re Falling Behind on Taxes
At IRSProb.com, we help people and business owners get ahead of their tax problems—before the IRS shows up.
Whether you’re dealing with:
- Back taxes
- Unfiled returns
- Audit threats
- IRS-CI inquiries
- Or just feel overwhelmed and behind…
Final Word: Tax Crimes Carry Real Consequences
James Alexander’s case is a tax crime case. Yes, he received disability benefits, but his real mistake was pretending not to earn income while continuing to work—and then lying to the IRS about it.
He paid the price with prison time, hundreds of thousands in restitution, and a permanent felony record.
You don’t have to.
Get in front of your tax issues now. Let IRSProb.com help you fix the damage before it becomes irreversible.
