Branson Man Pleads Guilty to Tax Evasion

SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Branson, Mo., man pleaded guilty in federal court today to tax evasion.

Barry Knudsen, 54, of Branson, waived his right to a grand jury and pleaded guilty before U.S. Magistrate Judge David P. Rush to a federal information that charges him with one count of tax evasion and one count of failing to file a tax return.

Knudsen admitted that, despite earning significant income through several businesses in which he is a shareholder, he repeatedly failed to file and pay federal and state income taxes. Knudsen took affirmative acts to evade paying income taxes for six years, for the tax periods from 2009 through 2014. His gross annual income during those years ranged from $229,271 to $286,642 and totaled more than $1.5 million.

Knudsen’s continued failure to file income tax returns, in conjunction with his failure to have adequate federal income tax withholding, resulted in a total federal tax loss of $217,958 and a total state tax loss of $46,439. The total tax loss for both the federal and state governments amounts to $264,397.

Knudsen was in regular contact with IRS employees regarding his tax liabilities, and received numerous notices regarding his unfiled returns. Despite being contacted by law enforcement in October 2014, Knudsen has not filed federal income tax returns for the years of 2009 through 2013. Furthermore, Knudsen has not voluntarily paid all of federal income tax for the years 2009 through 2014. As of March 8, 2016, through Missouri’s amnesty tax program, Knudsen has satisfied the state’s demand for payment of state income taxes.

Under federal statutes, Knudsen is subject to a sentence of up to six years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.

This case is being prosecuted by Assistant U.S. Attorney Patrick Carney. It was investigated by IRS-Criminal Investigation.