Over $1.2 Million in additional gross receipts from Anatomical Services, LLC not reported to IRS
Los Angeles, California – Earlier this week, in the United States District Court in Los Angeles, a man who dissects cadavers for pathological examination pleaded guilty to federal tax charges.
Ernest Nelson, of Rancho Cucamongo, pleaded guilty to one count of subscribing to a false United States Income Tax Return, Form 1040, which he filed with the Internal Revenue Service for the 2002 tax year.
According to his plea agreement, Nelson admitted that during the years 1999, 2000, 2001, 2002, and 2003 he resided in Rancho Cucamongo, and owned and operated Anatomical Services, LLC, working as an Anatomical Prosector. For tax year 2002, Nelson failed to report to IRS at least $478,196 in gross receipts he received from his company, which resulted in a tax loss to the IRS of $176,156.
Nelson also admitted that for tax years 1999, 2000, 2001, and 2002, he failed to report to the IRS gross receipts from his business at least $174,548.99, $246,960, and $391,855, respectively, on his tax returns for each year in an attempt to decrease his tax liabilities.
For tax years 1999 through 2002, Nelson’s total tax liability was at least $433,031.92.
Nelson also admitted that for tax year 2003, he failed to report to the IRS at least $127,470 in gross receipts.
As a part of his plea agreement, Nelson has agreed to cooperate with the IRS in determining the taxes, penalties, and interest he owes for the years 2000 through 2003 and to promptly pay what he owes to the IRS. Additionally, Nelson has agreed to cooperate fully with the United States Attorney’s Office, the IRS, and any other law enforcement agency in any proceedings in which he is directed to do so.
According to the filed indictment, during the years 1999 through 2003, Nelson purchased or took anatomical specimens from the Willed Body Program at the University of California Los Angeles in order to sell such specimens to companies conducting research, research and development, and training.
When sentenced for his crimes, Nelson faces a statutory maximum three years in federal prison and a fine of $250,000.
The investigation and prosecution of Nelson was conducted by IRS – Criminal Investigation and the United States Attorney’s Office in Los Angeles.
United States Attorney’s Office Contact: Sandra Brown
Assistant United States Attorney
Chief, Tax Division