CINCINNATI, Ohio (FOX19) - A Fairfield man was sentenced to 13 months in prison Wednesday and ordered to pay $107,910 in restitution to the Internal Revenue Service, the government agency said.
Peter Kungu was charged with aiding and assisting in the preparation of a false income tax return or other document and the willful failure to pay tax to the IRS. He pleaded guilty to the charges in November 2018.
According to the IRS, Kungu didn’t file a personal tax return from 2012 to 2006 and he had never filed a corporate income tax return for his home healthcare business, Tender Care.
In January 2013, Kungu hired a tax preparation company to prepare the delinquent income tax returns and to help with any related income taxes, interest and/or penalties.
The IRS says Kungu falsely reported information about his income to the company, leading to a false corporate income tax return for the 2010 for the income tax year that reported no income.
At some point between April 2013 and June 2016, Kungu asked the company he had hired how much he owed to the IRS in total. They told him he owed $107,392.
Rather than pay the IRS, the agency says he withdrew $180,500 from his bank accounts and bought a gas station.
During the time Kungu purchased the gas station, the company advised Kungu several times to make estimated tax payments to the IRS for the 2013 income tax year and voluntary payments towards his past due income tax liabilities.
“This defendant had an opportunity to come clean with the IRS, but he chose a different path and he is going to prison for the decisions he made to skirt his income tax responsibilities,” said William Cheung, Acting Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office.