Fort Collins businessman pleads guilty to tax evasion
DENVER — Businessman Donald Dale Smith of Fort Collins pleaded guilty Tuesday to two counts of willful failure to file a tax return and faces possible jail time in federal prison plus a fine.
Each of the counts carries a penalty of not more than one year in federal prison and a fine of up to $25,000.
Smith, 67, is scheduled to be sentenced Jan. 19.
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Smith, owner and operator of the day-care center Mountain West Children’s Academy LLC in Fort Collins, failed to file income tax returns for income earned in 2008, 2009 and 2010.
According to the Internal Revenue Service, Smith received income of $183,343 in 2008, $122,068 in 2009 and $154,900 in 2010, but “willfully failed to file income tax returns.”
From 2008 through 2010, the day care was a profitable business and bank records reflect business deposits of $447,871 in 2008, $439,182 in 2009 and $442,169 in 2010.
As a result of his ownership of and draws from the day-care center, Smith had an income from 2008 through 2010 that required him to file personal federal income tax return with the IRS. Smith had income of $117,893 in 2008, $110,770 in 2009 and $134,138 in 2010. Smith owed federal income taxes totaling $117,954.
In June 2013, the IRS examined Smith’s tax situation. It found that from 2008 through 2010, Smith used $110,000 of the day care’s money for gambling at casinos in Blackhawk, substantial country club and golf-related expenses, and cigars, according to the U.S. Attorney’s office.
DENVER — Businessman Donald Dale Smith of Fort Collins pleaded guilty Tuesday to two counts of willful failure to file a tax return and faces possible jail time in federal prison plus a fine.
Each of the counts carries a penalty of not more than one year in federal prison and a fine of up to $25,000.
Smith, 67, is scheduled to be sentenced Jan. 19.
Smith, owner and operator of the day-care center Mountain West Children’s Academy LLC in Fort Collins, failed to file income tax returns for income earned in 2008, 2009 and 2010.
According to the Internal Revenue Service, Smith received…
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