Businessman Hit With $43,000 Fine After Tax Fraud Guilty Plea

A telecommunications device company founder who was indicted for tax evasion is on the hook for $43,000 in additional penalties under tax code Section 6663 because his tax underpayment was attributable to fraudulent activities, the US Tax Court said Wednesday.

John Thomas Minemyer significantly underreported his income while he was a major owner of Lozon, LLC, utilizing company funds to pay for personal expenses and failing to report these amounts in his taxes for his 2001 tax year, the Tax Court said.

Minemyer also provided inconsistent explanations for Lozon’s actions in 2000 and 2001, when the company took part ...