A Grand Jury Has Indicted Miami Businessman Joseph Stewart For Evading Taxes On $6.8 Million. IRS Says He Earned It Selling Internet to American Soldiers
A federal grand jury in Miami returned an indictment charging a Florida businessman Joseph Stewart. Prosecutors have charged Stewart with evading taxes on millions in income and filing false tax returns.
The indictment alleges from 2013 to 2021, Stewart earned more than $6.8 million in dividends. These dividends came from his 50% ownership in a business that sold internet access to American GIs. It also sold internet to contractors stationed abroad. However, he filed tax returns before the business became profitable. Yet, Stewart allegedly stopped filing timely tax returns once he began receiving significant dividends from his business.
Did Miami Business Owner Get Bad Tax Advice?
The indictment further alleges Stewart received letters from the IRS in 2019 stating he owed money. However, he hired a tax attorney and return preparers and told them a false story. They told him that over $3.8 million in dividends that he received between 2013 and 2018 were nontaxable loans.
Stewart allegedly also falsely told these professionals that he did not know the other shareholders of the business. As a result, the tax professionals allegedly filed 7 years of tax returns for Stewart. The tax preparers filed returns from 2014-2020 that underreported his income and taxes owed. Stewart filed these false tax returns with the IRS.
The indictment also alleges Stewart filed a false affidavit with ICE in 2016. Stewart affirmed that he had filed federal tax returns for the previous three years. Additionally, Stewart allegedly attached false unfiled copies of federal tax returns. He also falsely attested that they were true and correct copies of the returns of his IRS filings.
If convicted, Stewart faces a maximum penalty of five years in prison for each tax evasion count. He also faces a maximum penalty of three years in prison for each count for filing a false tax return. Stewart also faces a period of supervised release, restitution, and monetary penalties.
