Missouri used car dealer hides $300K from IRS

St. LOUIS – A used car salesman from Imperial, Missouri, appeared in federal court Monday and confessed to hiding more than $300,000 in sales commissions from the IRS.

The U.S. Attorney and the U.S. Attorney’s Office for the Eastern District of Missouri said Donald Benck pleaded guilty to three counts of making false statements about income tax returns.

Between 2014 and 2016, Benck recruited acquaintances to collect commission by check, which they cashed and gave the money to Benck. his acquaintances will keep a small fee for themselves.

All told, Benck’s acquaintance cashed in about $326,000 in checks.

Benck’s employer gave 1099 forms to his acquaintances since Benck did not report the income on his tax returns or notify the tax preparer of his commission.

According to prosecutors, Benck underreported his income on the 1040 form for 2014-2016. Benck refused to document $31,300 of his income in the tax year 2014, $131,400 for 2015, and $93,035 for 2016. As a result, the IRS reported a tax loss of $84,092.

Benck will be sentenced on Nov. 18.

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