A Stansbury Park man is facing 11 felony charges after he allegedly didn’t pay some or all of his taxes for several years.
Raymond Smith Park, 57, is charged with five counts of second-degree felony tax evasion, five counts of third-degree felony failure to render a proper tax return, and one count of second-degree felony pattern of unlawful activity.
A criminal investigator with the Utah State Tax Commission reviewed tax records for Park between 2013 and 2017, according to a probable cause statement. Park is a licensed master plumber, who worked for several different businesses over 33 years.
Federal Internal Revenue Service records show Park was issued W-2 forms from those various businesses during the five-year span. The records also indicate Park received unemployment and proceeds from real estate sales at the time.
The tax commission investigator also reviewed Park’s bank statements through a subpoena, which showed deposits from the identified sources, the statement said. They also found minimal deposits not reported to the IRS.
In the years in question, from 2013 to 2017, Park made a gross income of between $27,649 and $78,035, according to the statement. The amounts all exceeded the requirements to file federal income tax returns.
Since his income met federal income tax filing requirements during those years, Park was required to file state income tax returns as well, the probable cause statement said. State tax records showed Park did not file state income tax returns in 2014, 2015, or 2017.
For his returns in 2005 through 2011, 2013 and 2016, Park failed to report wages, retirement income and gain in the sale of real estate, the statement said. In those returns, aside from 2009 and 2016, Park submitted a substitute W-2 in which he reported zero wages.
Park also submitted a letter in his 2013 return that stated he didn’t have to pay taxes on wages because he is not a federal employee, according to the probable cause statement.
Investigators interviewed Park on Aug. 23, and he admitted to preparing, signing and filing the returns in 2013 and 2016, the statement said. He also admitted to signing and preparing the substitute W-2 forms claiming no income, writing the letter in the 2013 return and teaching his wife to file returns in the same manner.
The state tax commission had previously audited Park twice on fraudulent returns and he appealed both audits, the statement said. He argued he was not a federal employee or engaged in a trade or business so his wages were not taxable. His arguments were rejected and the audit upheld.
Between Oct. 1, 1992 and Aug. 6, 2018, the state tax commission sent Park approximately 67 letters, filed 19 tax liens and filed eight garnishments in an effort to get Park to comply with tax requirements, the probable cause statement said.
During the years investigated, 2013 to 2017, Park’s tax deficiencies were $2,573, $1,015, $2,891, $780 and $2,368, respectively.
Park is scheduled to make an initial appearance in 3rd District Court in Salt Lake City on Dec. 4 at 8:30 a.m. before Judge Amber Mettler.