A Virginia man has pleaded guilty to filing false tax returns underreporting the income he received through his construction company.
According to court documents and statements made in court, Timothy Agnew owned and operated Red Hill Construction, which was located in Hillsville, Virginia.Â
RHC repaired and installed roofs, remodelled homes and built home additions.
Between 2017 and 2021, Agnew filed false personal tax returns that substantially underreported his gross receipts, and thus his income, from RHC.
Specifically, Agnew omitted over $2,000,000 in gross receipts earned from construction projects for which the customers did not directly report those payments to the IRS through IRS Form 1099.
In all, Agnew caused a tax loss to the IRS of over $375,000.
Agnew is scheduled to be sentenced on April 3.
He faces a maximum penalty of three years in prison as well as a period of supervised release, restitution and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
