The recent sentencing of Justin Daniels for filing false tax returns in connection with his dog-brokering business has sent a strong message to those who seek to exploit the tax system for personal gain.
U.S. Attorney Ryan K. Buchanan expressed, “Rather than pay his fair share of taxes, Daniels spent years submitting fraudulent returns in the name of personal greed. This office will continue to work with our law enforcement partners to pursue and prosecute those who exploit our tax system at the expense of law-abiding taxpayers.”
Assistant Special Agent in Charge, IRS Criminal Investigation, Atlanta Field Office, Lisa Fontanette, emphasized, “Justin Daniels’ sentence is an example of what people who willfully fail to report all their income can expect as the outcome of their crime. IRS Criminal Investigation will continue investigating and holding accountable individuals who intentionally conceal income and evade taxes.”
According to U.S. Attorney Buchanan, Daniels had been operating a dog brokering business since 2006, selling puppies raised by breeders in Kentucky and Tennessee. Despite earning over $2.3 million between 2015 and 2018, Daniels underreported $1,186,830 in gross receipts, resulting in additional tax due of $258,265. In addition to filing false tax returns, Daniels misrepresented his income to private lenders to secure loans.
Justin Daniels, 48, of Marietta, Georgia, was sentenced to one year, two months in prison and one year of supervised release on April 22, 2024. He was also ordered to pay restitution in the amount of $258,265 after pleading guilty to the charges on December 5, 2023.
The case was investigated by the Internal Revenue Service Criminal Investigation, and Assistant U.S. Attorney David A. O’Neal and former Assistant U.S. Attorney Thomas Krepp prosecuted the case.