A Bentonville businessman who pleaded guilty Wednesday to income tax evasion owed over $1.3 million to the IRS, prosecutors said.
James Brassart filed an individual income tax return in 2016 that showed an adjusted gross income of $1,502,749, with total tax due of $486,438, according to a news release by the U.S. Justice Department. Brassart didn’t pay all of the taxes due, and used three “nominee corporations” in order to continue making money without appearing to have an income or assets, the release states.
Prosecutors said Brassart also filed four false bankruptcy petitions between 2010 and 2016, hiding his interests in the nominee corporations.
The businessman’s efforts left the IRS with a tax loss of roughly $1,360,682, according to the release.
Brassart faces up to five years in prison, as well as a period of release, restitution and monetary penalties, the Justice Department said. U.S. District Court Judge Timothy L. Brooks set sentencing for a later date.