4 days ago
Pasadena man faces prison after paying only $770 in taxes on $1M in income
A Pasadena man is facing up to three years in federal prison after he admitted to hiding his money so that he paid only $770 in taxes on about $1 million in income.
Gabriel David Guerrero pleaded guilty on Monday to one count of corruptly obstructing or impeding, or endeavoring to obstruct or impede, the due administration of the Internal Revenue Code, the U.S. Department of Justice said in a news release.
Guerrero, who is free on $50,000 bond, works as a commercial real estate broker and made about $1 million in the years 1998-99, 2001-05 and 2012-13, though he 'did not file timely federal individual income tax returns' for those first two periods, the release explained. For 2012-13, Guerrero owed additional taxes.
For those years, the IRS sent him 'dozens of notices' in an attempt to collect what the agency was owed, though Guerrero 'took steps to conceal his income and assets from the IRS.'
'For example, he made extensive use of cash and cashier's checks; submitted a false form to the IRS that significantly understated his income; and used a nominee bank account to deposit income,' the DOJ said.
For years, his scheme was able to keep tax collectors at bay.
'Despite the IRS's issuance of dozens of levies to bank accounts and brokers with whom Guerrero worked throughout the collection action from October 2013 to November 2017, the IRS obtained only $770 towards Guerrero's tax liabilities for 1998, 1999, 2001 through 2005, 2012, and 2013 despite Guerrero earning approximately $1 million in income from his work as a commercial real estate broker over that same time frame,' the DOJ said.
He's scheduled to be sentenced on Sept. 15, and he faces a maximum of three years in federal prison.
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