Date: September 29, 2022

Contact: newsroom@ci.irs.gov

Last week, Ryan C. Patterson, of Scottsdale, Arizona, was found guilty by a federal jury on three counts of Tax Evasion. Sentencing is scheduled for December 5, 2022, before United States District Judge John J. Tuchi.

Patterson, a contractor specializing in remodels, failed to accurately report his income between calendar years 2014 and 2016. He received checks from customers made out to him personally and then deposited the checks into his personal checking accounts. He also received payments in cash from customers that he failed to report. At trial, the government introduced evidence that Patterson failed to report over $1.9 million in gross income and avoided paying a combined total of $700,000 in taxes due over the span of the three charged tax years.

The evidence at trial revealed that Patterson reported a loss of $38,000 in 2016 despite, in the same year, purchasing a primary residence for $445,000 along with other lavish expenditures.

"The American tax system provides government services critical to our residents," said U.S. Attorney Gary Restaino. "Every time someone cheats the tax system, the burden of providing vital services increases for taxpayers who pay their fair share. The jury's verdict has sent a clear message that tax cheats will not be tolerated."

Internal Revenue Service - Criminal Investigation conducted the investigation in this case. Assistant U.S. Attorneys Kevin M. Rapp and Aron Ketchel, District of Arizona, Phoenix, handled the prosecution.