A federal grand jury in Miami has indicted Joseph Stewart, a businessman from Florida, on charges of tax evasion and filing false tax returns. The indictment alleges that between 2013 and 2021, Stewart received over $6.8 million in dividends through his 50% ownership in a business that provided internet access to American servicemembers and contractors stationed overseas.
According to the indictment, Stewart filed tax returns before his business became profitable but stopped submitting timely returns after he began earning significant dividend income. After receiving correspondence from the IRS in 2019, Stewart allegedly hired a tax attorney and return preparers but misled them by claiming that more than $3.8 million he received between 2013 and 2018 were nontaxable loans. He also reportedly told these professionals that he did not know the other shareholders of the company.
The professionals prepared tax returns for Stewart for the years 2013 through 2020 based on this information, which allegedly resulted in underreported income and taxes due. All but the 2013 return were reportedly filed with the IRS.
Additionally, prosecutors allege that in April 2016, Stewart submitted a false affidavit to United States Citizenship and Immigration Service stating he had filed federal tax returns for the previous three years. He is accused of attaching unfiled copies of federal tax returns while falsely certifying they were accurate copies submitted to the IRS.
If convicted, Stewart could face up to five years in prison for each count of tax evasion and up to three years per count of subscribing to a false tax return. He may also be subject to supervised release, restitution, and monetary penalties. Sentencing will be determined by a federal district court judge who will consider sentencing guidelines and statutory factors.
The investigation is being conducted by IRS Criminal Investigation and the Special Inspector General for Afghanistan Reconstruction. The case is being prosecuted by Trial Attorneys Ezra Spiro and Likhitha Butchireddygari from the Tax Division.
"An indictment is merely an allegation. All defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law."
