Article - April 14, 2008 - KIROtv

Puyallup Chiropractor Nailed For Failing To File Tax Returns

TACOMA, Wash. -- A U.S. district court in Tacoma sentenced a chiropractor in Puyallup, Washington., on Monday to three months in prison and seven months in a halfway house for failing to file federal income tax returns, reported the U.S. attorney’s office.

U.S. District Judge Benjamin H. Settle also ordered Kevin Lynn Terry, 45, to file all delinquent tax returns and to pay all remaining taxes due.

Terry used trusts to conceal his chiropractic income and personal assets, including his home, during the years 1996 and 1997.

The IRS audited these two years and found the trusts to be shams.

Terry later agreed to the IRS' tax assessments for those years.

Beginning in 1998, he changed tactics and began to willfully evade the IRS' ability to assess and collect tax for the years 1999 through 2001. This included not filing individual Form 1040 returns.

He also formed a corporation in 1998, named Puyallup Chiropractic Clinic Inc., with himself as president, for which he did not file Corporate 1120 tax returns.

During the subject years of 1999 through 2001, Terry evaded tax of about $70,000.

Before criminal charges were brought, he filed tax returns for the subject years and paid the taxes due.

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