On September 1, 2016, Larry Lester Larson, 73, pleaded guilty to one count of tax evasion. The defendant has agreed to pay restitution to the United States government in the amount of $183,382. Sentencing is scheduled for November 16, 2016.
According to court records, Larson, was the CEO and sole owner of State Industrial Supply Corporation, a company that distributed fasteners and machine parts. During the tax years 2006 through 2009, Larson paid numerous personal expenses out of his corporation’s business account. These expenses totaled approximately $413,832 and were deducted as business expenses on the corporation’s Federal income tax returns that Larson filed on behalf of the corporation.
Among the personal expenses Larson falsely deducted as business expenses included, elective surgery, dental surgery, garage floor coating for his personal residence, the purchase of jewelry, the purchase of an ATV, remodeling expenses for his son’s personal residence, a car lift at his personal residence, pool service and utilities for his personal residence, payments for portions of a family member’s wedding expense, a personal loan that was paid back and falsely expensed as “bad debt,” and airfare for a Hawaiian vacation.
“The proper reporting of expenses and income is an important requirement of business owners. In this case, the defendant wrongfully used his business to fund the purchase of lavish items. The result of this investigation reflects IRS-Criminal Investigation’s efforts to deliver justice to honest taxpayers,” stated IRS-Criminal Investigation Special Agent in Charge Ismael Nevarez, Jr.
The investigation in this case was conducted by the Internal Revenue Service Criminal Investigation.