March 9th, 2007

Couple Pleads Guilty to Filing False Tax Return

Memphis, TN – David Kustoff, United States Attorney for the Western District of Tennessee, announced today Clinton D. and Debra Pettis pled guilty today to one count of filing a false income tax return for calendar year 2003 before U.S. District Judge Jon P. McCalla. Pettis’ each face a maximum penalty of 3 years in prison and a fine of up to $250,000 when they are sentenced on June 6, 2007.

According to their plea agreements filed during the hearing, the Pettis’ admitted that the tax loss to the government for tax years 2002 and 2003 is $42,597. They both agreed to file amended tax returns for tax years 2002 and 2003 reflecting all unreported taxable income by their sentencing date.

According to the information filed on February 13, 2007, the Pettis’ reported $55,000 in gross receipts on their 2003 tax return. However, Pettis’ admitted that their gross receipts were understated by $104,752.

This investigation was conducted by IRS Criminal Investigation. Assistant U.S. Attorney Stuart J. Canale represented the government.

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