An owner of a Modesto tile installation company on Thursday pleaded guilty to hiding more than $292,000 of his business income from the IRS, the U.S. attorney's office in Sacramento reported.
Timothy B. Baum, 44, of Modesto was convicted of two counts of subscribing and filing a false tax return. Baum's Creative Tile business installed tile for commercial properties and homes in Modesto.
Federal prosecutors said Baum deposited more than $292,000 into his personal account and concealed the money from his bookkeeper and tax preparer.
Baum admitted he willfully failed to report this income to the IRS for the years 2004 and 2005.
"At this time of year, when most Americans are doing their civic and legal duty and paying their taxes, it is important that they know that those few who seek to cheat will face the prospect of criminal prosecution," said U.S. Attorney Benjamin Wagner.
Baum's sentencing hearing is scheduled for July 8. He faces a maximum sentence of three years in federal prison and a $250,000 fine for each count.