By Bill Estep, Lexington Herald-Leader (TNS)

A former Kentucky accountant has been indicted after allegedly failing to report more than $320,000 in income on his federal taxes.

A federal grand jury indicted Charles Marshall Stivers, of Manchester, last week on two charges of making false statements on tax returns in 2018 and 2020.

Thanks for reading CPA Practice Advisor!

Subscribe for free to get personalized daily content, newsletters, continuing education, podcasts, whitepapers and more...

Already registered? Login

Need more information? Read the FAQ's

Stivers reported gross income of $245,130 for one tax year, but failed to report another $170,507, the indictment charges.

In the second tax year at issue, Stivers allegedly reported gross income of $305,378 but failed to report an additional $157,922.

The charges are punishable by up to three years in prison each.

Stivers has had prior legal trouble over his actions as an accountant. He was a certified public accountant from 1989 until his CPA license was revoked in October 2015 after he pleaded guilty in Tennessee federal court in a case alleging tax fraud against a state legislator.

In that case, Stivers told authorities Rep. Joe Armstrong made a profit of about $500,000 selling cigarette tax stamps but had Stivers run the money through an account of his at a bank in Manchester to hide the windfall.

Stivers said he wrote checks from his account to Armstrong and did not include the money on a tax return he prepared for Armstrong.

Stivers pleaded guilty to conspiracy and was sentenced to two years’ probation and restitution of $19,787 in restitution.

Armstrong argued Stivers was at fault because he relied on Stivers to do his taxes, but a jury convicted him of filing a false tax return.

A judge sentenced Armstrong to three years of probation, a $40,000 fine and restitution to the IRS of $99,943.

Stivers faced another charge in 2021 of putting false information in a document he submitted to the IRS.

Stivers said in the document that he had authority to represent a restaurant in a tax case, but was not authorized to practice as a CPA at the time and used his son’s license number, according to the court record.

Stivers pleaded guilty to making and using a false document.

U.S. District Judge Claria Horn Boom sentenced him in May 2022 to 10 months in prison and a fine of $30,000.

_______