Inverness man pleads guilty to failing to report $1.4 million in income

An Inverness man pled guilty in federal court Wednesday to failing to report $1.4 million worth of income between 2003 and 2007, officials from the Internal Revenue Service said.

Michael Colby, sole proprietor of the Colby Company which purchases and sells wholesale cars, pled guilty in federal court to not reporting his $1.4 million salary since 2003, IRS officials said.

Colby was required to report income from Colby Company, but did not file tax returns.

At that salary, Colby was expected to pay more than $377,000 in taxes to the government, officials said.

Colby was officially charged with three counts of failing to file tax returns, a misdemeanor charge.

Per the plea agreement he agreed to, Colby will pay restitution to the government for the tax loss and is scheduled to be sentenced on August 4.