Patel sentenced for tax evasion

Dharmendra B. Patel, 41, of Shelbyville was sentenced Thursday in Chattnooga by U.S. District Judge Curtis L. Collier to serve nine months in prison, followed by two years of supervised release.

Patel, owner and operator of Pik N Chek convenience and check-cashing store located in Shelbyville, pled guilty on Feb. 7, to one count of income tax evasion.

Patel admitted during the hearing that he filed his 2004 tax return with the Internal Revenue Service which stated his taxable income for the year was $2,916. He admitted that his income for 2004 was actuallyaround $184,957.

Patel had previously made restitution in full to the IRS in the amount of $114,059.

As part of his plea agreement, Patel admitted that the information provided to his return preparer regarding the gross income figure generated by him was significantly understated for both 2003 and 2004.

Patel failed to report income of approximately $169,437 and $182,041 for 2003 and 2004, respectively. He also admitted that the additional tax due and owing to the government as a result of this understatement is approximately $53,232 for 2003 and $60,827 for 2004.

This investigation was conducted by IRS Criminal Investigation. Assistant U.S. Attorney Gary S. Humble represented the government.