Crystal Lake businessman admits to tax evasion
A Crystal Lake businessman pleaded guilty Monday to federal income tax evasion.
Gary Petersen, 55, faces up to five years in prison for underreporting personal income, according to the U.S. attorney's office for the Northern District of Illinois.
Peterson, president of Peterson Sealcoating and Paving Inc. in Crystal Lake, deposited checks from his business into personal accounts or cashed them in to avoid reporting them to the Internal Revenue Service, a news release said.
On March 23, 2017, Peterson filed a false tax return claiming he and a co-filer made $75,028 in 2016 while he knew they had a taxable income of $1,174,261, according to the news release.
The additional income meant Peterson should have paid $402,431 in taxes, instead of $10,919. Peterson admitted to underreporting personal income in 2012, 2013, 2014 and 2015, which resulted in additional tax of $618,678 due for all four years, the release said.
He also faces a fine of up to $250,000 or twice the gross gain resulting from the loss, whichever is greater.
Peterson is scheduled to be sentenced on Feb. 17.