To avoid his tax obligations, he cashed about $1.5 million in payments using check-cashing services.
A Connecticut man faces up to five years in prison after pleading guilty to tax charges.
According to court records, Michael C. Monroe, 48, of Norwalk, Connecticut, operates a business known as Monroe Construction. From 2008 through 2013, Monroe owed substantial unpaid income taxes and penalties to the IRS.
In 2014, the IRS levied the business bank account used by Monroe as the operating account for his construction company.
Monroe subsequently closed his business bank account and, between approximately November 2014 and November 2017, evaded payment to the IRS of his preexisting tax obligations by using a check-cashing service to cash approximately $1.5 million in customer checks paid to his business.
For the 2014 and 2015 tax years, Monroe failed to report to the IRS a total of more than $700,000 that his business generated in gross revenues.
In addition to evading payment to the IRS of more than $107,000, he understated the federal income taxes he owed in 2014 and 2015 by approximately $34,000.
Monroe has agreed to pay total back taxes of $141,041.17, plus interest and penalties. The case was investigated by the IRS’s Criminal Investigation Division.