Council Bluffs, Iowa – A McClelland, Iowa, businessman pleaded guilty Thursday (today), to tax evasion. According to documents and information provided to the court, 49-year old Michael Collins, was part-owner of a real-estate development firm that earned significant income in 2006. As a result of his ownership in the company, Collins received approximately $289,000 in income that year, but did not report it on his individual income tax return.

In 2008, the Internal Revenue Service (IRS) contacted Collins regarding the unreported income and Collins filed an amended return reporting the income and reflecting a tax due of more than $100,000. However, Collins did not pay the tax liability.

From 2006 through the present, Collins also operated an excavating and trucking company that generated more than $5.5 million in gross receipts. To evade payment of his outstanding tax liability, Collins registered the business as well as its bank

accounts in the name of nominees, used nominee entities to conceal over $5 million in gross receipts from the business, filed fraudulent corporate tax returns that listed nominees as the owners of the business and paid his personal expenses using the business’ unreported income. Collins also filed fraudulent documents with the IRS claiming to have no gross business receipts for the company and falsely told IRS employees that his only source of income was unemployment benefits. He admitted to causing a tax loss of more than $250,000.

Sentencing is scheduled for May 11, 2018, in United States District Court. Collins faces a statutory maximum sentence of five years in prison. He also faces a period of supervised release, restitution and monetary penalties.