A Sedalia man has been indicted by a federal grand jury for tax evasion.
According to information from Timothy A. Garrison, U.S. Attorney for the Western District of Missouri, 57-year-old Duane Dixon was charged in a two-count indictment returned by a federal grand jury in Kansas City on Wednesday, Jan. 29. Dixon was arrested Feb. 4 when he self-surrendered to federal authorities.
The federal indictment charges Dixon with one count of tax evasion and one count of obstructing the administration of tax laws.
Dixon allegedly failed to file timely tax returns for the years 1996 through 2010 and did not make any voluntary payment toward his taxes for those years. Dixon is specifically charged in the indictment with evading taxes in 2005 through 2010, for which the IRS assessed Dixon’s tax due and owing in the total amount of $639,333.
Dixon hired a return preparer to prepare tax returns for the 2005 to 2010 tax years, the indictment states, but provided the preparer with false and incomplete information. Knowing that these returns omitted significant income, Dixon submitted the returns to the IRS.
Dixon formed Dixon Builders LLC, on Feb. 28, 2012. Dixon then opened bank accounts, bought and sold real estate, and purchased a boat and vehicles in the LLC’s name, according to the indictment. During the 2013 and 2014 tax years, for example, Dixon purchased nine pieces of real estate outright in the name of Dixon Builders. Dixon allegedly concealed assets by transferring several properties from Dixon Builders to his adult children.
Dixon allegedly told an IRS revenue officer, who was attempting to collect payments from him, that he had no personal or business bank accounts, that he had no business such as an LLC, that he was self-employed as a handyman and had no employees, and that he did not own any rental homes or have any rentals in a business or other person’s name. Dixon allegedly knew these statements were false at the time he made them.
According to the indictment, Dixon filed bankruptcies at times when the IRS was attempting to assess or collect his taxes, to forestall levies and seizures of his property. Dixon failed to provide information or make payments, however, resulting in dismissals of cases by the bankruptcy court.
This case is being prosecuted by Assistant U.S. Attorney Tom Larson and was investigated by IRS-Criminal Investigation.