The Justice Department alleged that the couple failed to report more than $2 million in receipts.
An Indiana couple who owned a lawn care and snow removal business were ordered to pay more than $1 million after pleading guilty to conspiracy to defraud the United States.
Michael Closson, 52, and Laquita Closson, 49, of Goshen, Indiana, were ordered to pay in restitution $662,027 to the IRS; $298,300.75 to the Indiana Department of Revenue; and $64,732.39 to Medicaid. In addition to the restitution, Mr. Closson was sentenced to prison and Mrs. Closson was sentenced to home detention.
During tax years 2012 through 2016, the Clossons intentionally concealed their income from the IRS by filing false joint income tax returns that underreported their actual income. The Clossons failed to report more than $2 million in gross receipts, which resulted in their evasion of more than $600,000 in federal income taxes and almost $300,000 in state income taxes. The Clossons also submitted false Medicaid application forms that allowed them to unlawfully receive nearly $65,000 worth of Medicaid benefits. The Clossons own two homes, a timeshare, more than $10,000 worth of luxury handbags, and four vehicles, including a Lamborghini and a Cadillac Escalade.
“Honest and law-abiding taxpayers are fed up with the likes of those who use deceit and fraud to line their pockets with other people’s money as well as skirt their tax obligations,” an IRS agent said in a prepared statement.