Tam Phan, owner and operator of Happy Nails & Spa in Middleton, Wisconsin, pleaded guilty to tax evasion on Monday. The announcement was made by Chadwick M. Elgersma, Acting United States Attorney for the Western District of Wisconsin.
Phan, 40, has run Happy Nails & Spa as a sole proprietor since 2010. According to the investigation, a significant portion of the salon’s customers paid in cash between 2021 and 2023. Authorities found that only credit card sales were reported on Phan’s tax returns during this period. At her plea hearing, Phan admitted she deliberately failed to report cash sales from the business on her 2022 federal tax return.
U.S. District Judge William M. Conley has scheduled sentencing for October 28, 2025. Phan could face up to five years in prison if convicted.
The IRS Criminal Investigations division conducted the investigation into the case. Assistant U.S. Attorney Aaron Wegner is prosecuting.
