Branson couple pleads guilty to tax fraud

A Branson husband and wife pleaded guilty in federal court Wednesday to corporate tax fraud and filing false tax returns, according to the U.S. Attorney for the Western District of Missouri.

Carl Roger Davis and Jo Elaine Davis pleaded guilty to the charges in an April 4, 2008, federal indictment, according to a news release.

Carl Davis owned Bottom Line Employee Services of Missouri Inc. Employees from that company worked at Farmhouse Restaurant in Branson, and Carl Davis' son, Jeffery Davis, was an employee of Bottom Line and general manager of the restaurant.

Carl Davis admitted that, from 2000 through early 2005, he paid some of his employees in cash, failing to report $53,514 in taxes to the Internal Revenue Service. Jeffery Davis pleaded guilty last year to his part in the scheme and was sentenced to one year and one day in federal prison without parole.

False payroll information was transmitted to a bookkeeper who prepared payroll checks and federal employment tax returns for the company. Davis also filed false Employer’s Quarterly Federal Tax Returns for Bottom Line with the IRS that omitted the cash compensation, according to the release.

Jo Davis pleaded guilty to filing a false 2005 tax return, omitting nearly $69,000 in compensation from Arbonne International Inc. The omission caused a tax loss of as much as $19,000, according to the release.

Under federal statute, Carl Davis faces up to eight years in prison and a fine of up to $500,000, plus costs of prosecution and restitution. Jo Davis faces up to three years in prison and a fine of up to $250,000.[[In-content Ad]]