Missouri scrap metal businessman admits tax evasion

3 months 1 week 3 days ago March 15, 2017 Mar 15, 2017 Wednesday, March 15 2017 Wednesday, March 15, 2017 8:58:00 AM CDT in News
By: The Associated Press

KANSAS CITY (AP) — The owner of a Kansas City, Missouri, scrap metal business that operated largely on a cash basis has admitted in federal court that he evaded more than $350,000 in federal income taxes.

Thirty-one-year-old Joseph Lee Scott Deardorff of Kansas City pleaded guilty Tuesday. He also admitted that he hid assets from the Internal Revenue Service.

Prosecutors say that as owner and operator of Total Recovery and Recycling LLC, Deardorff earned $194,067 in taxable income in 2011 and owed $65,067 in federal income tax that year. The total tax loss, including relevant conduct during tax years 2007 through 2012, is $355,310.

Deardorff admitted he tried to hide the nature and extent of his assets from the Internal Revenue Service.

Deardorff's sentencing was not immediately scheduled.

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