In a recent development that highlights the importance of compliance with federal tax laws, Dean Dawson, a resident of Hurricane, West Virginia, has been indicted on multiple charges relating to employment tax offenses and the failure to file personal tax returns. The indictment, handed down by a federal grand jury in Charleston, West Virginia, reveals a pattern of alleged tax violations spanning several years and involving significant sums of money.
The Allegations Against Dean Dawson
According to the indictment, Dean Dawson has owned and operated Real Property Consulting Group LLC, a real estate appraisal business, since 1994. The charges stem from Dawson’s alleged actions between the third quarter of 2018 and 2023. During this period, Dawson is accused of failing to remit Social Security, Medicare, and federal income taxes withheld from his employees’ paychecks to the IRS. These withholdings are a fundamental aspect of the federal tax system, ensuring that employees’ tax obligations are met throughout the year.
The indictment further alleges that Dean Dawson did not file the required quarterly tax returns that report these withholdings. These returns are crucial for the IRS to track and ensure that employers are fulfilling their tax responsibilities. Despite providing his employees with Forms W-2, Wage, and Tax Statement, Dawson reportedly did not file these forms with the Social Security Administration. This failure disrupts the accurate recording of employees’ earnings and Social Security contributions, potentially affecting their future benefits.
Misuse of Business Funds
Compounding these alleged violations, Dean Dawson is also accused of using his business bank account for personal expenses. This improper use of business funds can blur the lines between personal and business finances, leading to further legal complications. Additionally, the indictment claims that Dawson directed funds to his wife, who was not an employee of the business. Such actions could be seen as an attempt to disguise the true nature of the transactions and evade tax obligations.
Failure to File Personal Tax Returns
Perhaps most notably, Dean Dawson is charged with not filing his personal tax returns from 2018 to 2023. Filing personal tax returns is a basic legal requirement for all individuals earning above a certain threshold. The failure to do so over multiple years suggests a deliberate attempt to avoid financial transparency and accountability.
Legal Implications
Dean Dawson faces serious legal consequences if convicted. He is charged with 19 counts of failing to collect and remit employment taxes, with each count carrying a maximum penalty of five years in prison. Additionally, Dawson is charged with six counts of willfully failing to file personal tax returns, each of which carries a maximum penalty of one year in prison. Thus, the potential prison time for Dawson could be substantial, depending on the outcome of the trial.
The Announcement
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the DOJ’s Tax Division and U.S. Attorney William S. Thompson for the Southern District of West Virginia announced the indictment. IRS Criminal Investigation is the agency leading the investigation, highlighting the seriousness with which the federal government treats tax violations.
The case is being prosecuted by Trial Attorneys Brian E. Flanaghan and Rebecca A. Caruso from the Tax Division, along with Assistant U.S. Attorney Jonathan Storage for the Southern District of West Virginia. Their combined efforts highlight the collaborative approach taken by various branches of the Department of Justice to ensure compliance with tax laws.
Presumption of Innocence
It is important to remember that an indictment is only an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. This principle is a cornerstone of the American judicial system, ensuring that every individual receives a fair trial.
