Grand Rapids chiropractor Kerry Thomas Kilpatrick, age 55, of Rockford, pled guilty last week to felony tax evasion.
At a hearing before U. S. District Judge Robert Holmes Bell, Kilpatrick admitted that he evaded paying taxes for income that he earned as owner of the Kilpatrick Chiropractic Life Center in Grand Rapids for the 2002 tax year. As part of the plea agreement, Kilpatrick acknowledged that he will be responsible for repayment of all unpaid taxes from 1999 to the present as well as interest and penalties.
In the written plea agreement, Kilpatrick acknowledged that he did not pay federal income taxes on income earned from 1999-2007, during which time the Kilpatrick Chiropractic Life Center has gross deposits of over $3,000,000.00. During this time Kilpatrick set up a variety of shell companies, both in the Republic of Panama and in other states, which were used to hold a variety of personal assets. Kilpatrick also acknowledged that, after being contacted by the Internal Revenue Service in 2005, Kilpatrick filed tax returns for 1999-2007 that listed taxable income of over $1,500,000.00; however, these returns also reported deductions in the exact amount of his income, which resulted in no reported taxable income for each year. At his plea hearing, Kilpatrick admitted that he did not have any such legitimate deductions.
At a sentencing hearing scheduled for May 3, 2011, Kilpatrick will be facing up to five years in prison and a $250,000 criminal fine in addition to the repayment of his taxes with interest and penalties.
This case was investigated by special agents of the IRS Criminal Investigation and is being prosecuted by U.S. Attorney Donald A. Davis and Assistant U.S. Attorney Raymond Beckering III.
U.S. Attorney Davis commented that: “People who cheat on their taxes steal from all of the citizens of this country. The investigation and prosecution of persons who violate the tax laws is, and will remain, a priority of this office.”