Owner Of San Franciso Business Pleads Guilty To Filing False Tax Return

SAN FRANCISCO – Sean Love was charged and pleaded guilty to filing a false federal income tax return, announced Acting United States Attorney Brian J. Stretch and Internal Revenue Service, Criminal Investigation, Acting Special Agent in Charge Michael T. Batdorf.  

In pleading guilty, Love, 46, of San Francisco, admitted he owned and operated Love Painting, a San Francisco-based sole proprietorship that provided painting services in and around the Bay Area.  For the 2009 tax year, Love informed his tax return preparer that Love Painting had received $391,810 in gross business receipts during 2009.  Love knew the return preparer would use that figure to report the gross business receipts on Schedule C of his 2009 federal income tax return and that his gross receipts were underreported by an additional $357,135.  As a result of underreporting the gross business receipts that should have been reported on Schedule C of his 2009 federal income tax return, additional tax was due and owing to the Internal Revenue Service for his 2009 federal income tax liability in the amount of $119,839.  On January 7, 2016, Love was charged by information with filing a false return in violation of 26 U.S.C. §7206(1). 

Defendant’s sentencing hearing is scheduled to take place in San Francisco on June 14, 2016, before the Honorable Richard Seeborg, United States District Judge.  The maximum penalty for filing a false tax return in violation of 26 U.S.C. § 7206(1) is 3 years in prison and a fine of $250,000.  However, any sentence will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.

Assistant U.S. Attorney Cynthia Stier is prosecuting this case.  The prosecution is the result of an investigation by the Internal Revenue Service, Criminal Investigation.