A Morgantown physician pleaded guilty to federal tax fraud on Monday, admitting to understating taxable income on tax returns.
According to United States Attorney William Ihlenfeld, David M. Anderson, 63, of Morgantown, caused a loss to the IRS of $143,599.
Court records show Anderson was indicted on four counts of filing false tax returns from 2017-20 but entered a plea agreement in which he pleaded guilty to only count four of the indictment. Count four states he willfully filed a false 1040 tax return for tax year 2020.
The indictment states Anderson reported a taxable income of $20,282 and total taxes in the amount of $9,298, when he knew his taxable income was greater than the amount reported and should have paid more in total taxes.
The plea agreement stipulates that the tax loss from 2017-20 is between $100,000 and $250,000. Anderson agreed to pay $143,599 in restitution to the IRS.
“The Justice Department works every day to ensure that those who fail to pay their income taxes are held to account,” said U.S. Attorney Ihlenfeld. “Dr. Anderson fell far short of his obligation and now he must pay up, plus penalties and interest, and faces a lengthy prison sentence.”
A federal judge will determine Anderson’s sentence at a later date after considering U.S. sentencing guidelines.
The maximum penalty Anderson will face is imprisonment for a term of not more than three years, a fine of not more than $100,000, and a period of supervised release for one year.
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