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Wednesday, January 30, 2013

MICHIGAN MAN PLEADS GUILTY, BELIEVED FILING COMPLETED TAX RETURNS A VIOLATION OF CONSTITUTIONAL RIGHTS

FROM: U.S. DEPARTMENT OF JUSTICE
Monday, January 28, 2013
Michigan Man Pleads Guilty to Tax Charges

Steven Kern of Marine City, Mich., pleaded guilty today before U.S. District Court Judge Arthur J. Tarnow in the Eastern District of Michigan to eight counts of filing false corporate tax returns and eight counts of failing to file his individual tax returns, the Justice Department and Internal Revenue Service (IRS) announced today.

According to filed court documents and court proceedings, Kern operated the Kern Chiropractic Center from Marine City and diverted cash and check payments from the business for his own personal use. The indictment alleges that Kern failed to file individual tax returns for tax years 2003 to 2010, despite earning more $1.2 million in gross income during that time period. According to filed court documents and court proceedings, Kern told IRS-Criminal Investigation Special Agents he believed signing and filing a completed tax return was a violation of his constitutional rights.

Each count of filing a false corporate tax return carries a maximum penalty of three years in prison and a $250,000 fine. Each count of failing to file an individual tax return carries a maximum penalty of twelve months imprisonment and a fine of up to $100,000. Kern is scheduled to be sentenced on April 30, 2013.

The case is being prosecuted by Trial Attorneys Mark McDonald and Jeff Bender of the Justice Department’s Tax Division. The investigation was conducted by IRS Criminal Investigation.

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