A Colorado dentist has been charged with six counts of tax evasion, following an indictment unsealed on Friday by a federal grand jury in Denver. The charges against Ryan Ulibarri, who owns and operates Ulibarri Family Dentistry in Fort Collins, stem from his alleged use of an illegal tax shelter to conceal more than $3.5 million in income from the Internal Revenue Service (IRS).
According to the indictment, Ulibarri purchased the tax shelter in 2016 for $50,000 and subsequently used it from 2017 through 2022 to hide a substantial portion of the income he earned through his dental practice. The shelter was allegedly structured through the creation of three trusts and a private foundation, for which Ulibarri signed trust instruments and opened bank accounts in their names.
The indictment further alleges that Ulibarri restructured his dental practice so that the majority of it was purportedly owned by one of the trusts. He is accused of transferring nearly all the funds earned from his dental practice into these trust and foundation bank accounts. These funds were then allegedly used to cover personal expenses, including the mortgage on his home and credit card bills.
In addition to concealing income, Ulibarri is accused of filing false tax returns for himself and the trusts, improperly assigning the income he controlled and earned from his practice to the trusts. The alleged scheme resulted in a tax loss to the IRS of more than $1 million.
If convicted, Ulibarri faces a maximum sentence of five years in prison for each count of tax evasion. The final sentence will be determined by a federal district court judge, who will consider the U.S. Sentencing Guidelines and other statutory factors before making a decision.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division announced the charges. The investigation is being conducted by IRS Criminal Investigation, and the case is being prosecuted by Trial Attorneys Amanda R. Scott and Lauren K. Pope, along with Senior Litigation Counsel Corey J. Smith of the Tax Division.
This article, “Colorado Dentist Charged with Six Counts of Tax Evasion for Alleged Use of Illegal Tax Shelter” was first published on Small Business Trends