A Charlotte businessman has been indicted on charges of tax fraud related to a charitable organization he founded, according to an announcement from Russ Ferguson, U.S. Attorney for the Western District of North Carolina. Michael Kahn, 65, faces two counts of aiding and assisting in the preparation of a false tax return and two counts of failure to file a tax return. He appeared before U.S. Magistrate Judge Omar J. Alboulhosn and was released on bond.
Donald “Trey” Eakins, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation, Charlotte Field Office (IRS-CI), joined U.S. Attorney Ferguson in making the announcement.
The indictment states that Kahn established The Michael A. Kahn Family Foundation in 2010 as a tax-exempt entity intended for charitable, religious, and educational purposes. Kahn served as the sole officer and board member in all leadership roles within the foundation. Between 2020 and 2023, he allegedly transferred more than $4.5 million from the foundation to himself without reporting those funds as income on his 2020 and 2021 tax returns filed with the IRS. The indictment further alleges that Kahn did not file tax returns for 2022 and 2023 despite receiving income exceeding $25,900 and $27,700 in those years.
If convicted, Kahn could face up to three years in prison for each count related to filing false tax returns and up to one year for each count of failing to file a return. Sentencing will be determined by a federal district court judge after considering relevant guidelines and statutory factors.
The IRS-CI led the investigation into this case.
Assistant U.S. Attorney Caryn Finley is prosecuting the case.
“The charges against the defendant are merely allegations, and the defendant is presumed innocent unless proven guilty beyond a reasonable doubt in a court of law.”
