CLARKSVILLE, TN (CLARKSVILLE NOW) – A Clarksville business owner has been convicted of filing false tax returns that omitted income he earned from his business, according to a release from the U.S. Attorney’s Office.
Court documents and evidence presented at trial show that David Haley, 65, of Clarksville, owned Haley & Associates Mechanical Contractors, a heating and plumbing business. From 2014 through 2017, Haley & Associates was hired as the subcontractor on commercial projects in middle Tennessee and was paid more than $1,000,000 for each year.
Generally, the contractors that hired Haley & Associates paid via check and reported the payments to the IRS via Form 1099-MISC as non-employee compensation. Even though Haley personally received a portion of the company’s earnings as business income and nonemployee compensation, he reported earning no income on his 2014–2017 tax returns, the release said.
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Haley’s failure to report that income on his tax returns for tax years 2015 through 2017 caused the IRS a loss of approximately $186,290. Haley was convicted of three counts of filing false tax returns for tax years 2015, 2016, and 2017. He was acquitted of one count of filing a false tax return relating to his 2014 filing.
The local business owner will be sentenced at a later date and faces a maximum penalty of three years in prison for each count of filing false tax returns.
U.S. District Judge William L. Campbell, Jr., will determine any sentence after consideration of the U.S. Sentencing Guidelines and other statutory factors.
The IRS-Criminal Investigation Division investigated the case, and Assistant U.S. Attorney Kathryn Booth and Trial Attorney Mitchell Galloway of the Justice Department’s Tax Division are prosecuting the case.