Labadie Man Pleads Guilty to False Tax Return Charges

St. Louis, MO – Denver Nichols pled guilty to charges of false tax returns for the tax years 2007-2008. Nichols appeared today before United States District Judge John A. Ross.

According to court documents, Nichols is a roofing contractor located in Labadie, Missouri, who did business under the name of Eagle Roofing Co. Nichols did not file his 2007 federal income tax return until November 7, 2011, and his 2008 federal income tax return until December 12, 2012. The IRS determined that Nichols understated his gross receipts on the Schedule C of his 2007 return in the amount of $959,500, which actual total was $1,584,208. His gross receipts on the Schedule C of his 2008 return in the amount of $794,680, which actual total was $1,111,597. Nichols knew that the reported amounts of the gross receipts of Eagle Roofing for the years 2007 and 2008 were substantially less than the actual amounts of the gross receipts of Eagle Roofing for those years.

Nichols, Labadie, MO, pled guilty to two counts of filing false tax returns. Sentencing has been set for July 7, 2017.

Filing a false tax return carries a maximum penalty of three years in prison and/or $250,000 fine for each count. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.

This case was investigated by Internal Revenue Service Criminal Investigation. Assistant United States Attorney Steven Muchnick is handling the case for the U.S. Attorney's Office.