San Francisco Man Underreported His Income Tax Liability By Over $100,000
SAN FRANCISCO– LAWFUEL – Legal News Network – United States Attorney Kevin V. Ryan announced that Fred De Manuel, Jr. pleaded guilty today to filing a false federal income tax return for the 2001 tax year. This guilty plea is the result of an investigation by the Internal Revenue Service-Criminal Investigation.
Mr. De Manuel, Jr., 61, of San Francisco, is the sole owner of FRM Builders, a business that specializes in home renovations in the Bay area. He was indicted by a federal Grand Jury on June 29, 2006. Under the plea agreement, Mr. De Manuel, Jr. pleaded guilty to one count of willfully making and subscribing a false income tax return in violation of 26 U.S.C. § 7206(1).
In pleading guilty, Mr. De Manuel, Jr. admitted that, as sole owner of FRM Builders, a Schedule C business, he was required to report its gross business receipts on his personal federal income tax return, and he was required to pay income and self-employment taxes on FRM Builders’ net income after legitimate expenses were deducted. He admitted that, for the tax year 2001, he reported less gross business receipts for FRM Builders than were actually received in order to reduce his federal income tax liability for the 2001 tax year. He admitted that he underreported his federal income tax liability by at least $108,108.52 for 2001. Additionally, he signed his federal income tax return under penalties of perjury with the belief that it was not true and correct because it did not accurately report the business gross receipts for FRM Builders.
The sentencing of Mr. De Manuel, Jr. is scheduled for January 12, 2006 before Judge Illston in San Francisco. The maximum statutory penalty for a violation of 26 U.S.C. § 7206(1) is 3 years imprisonment, a fine of $250,000, plus restitution, and a $100 mandatory special assessment. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Cynthia Stier is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Stefania Chin. The prosecution is the result of an investigation by the Internal Revenue Service.
Case #: CR-06-0456-SI
A copy of this press release may be found on the U.S. Attorney’s Office’s website at www.usdoj.gov/usao/can.
Electronic court filings and further procedural and docket information are available at https://ecf.cand.uscourts.gov/cgi-bin/login.pl.
Judges’ calendars with schedules for upcoming court hearings can be viewed on the court’s website at www.cand.uscourts.gov.
All press inquiries to the U.S. Attorney’s Office should be directed to Luke Macaulay at (415) 436-6757 or by email at [email protected]