Sand City business owner pleads guilty to tax fraud

A Carmel man has pleaded guilty to tax fraud and failing to report cash income.

According to the Department of Justice, Daniel Laine Kyle admitted to not issuing invoices to customers who paid in cash at the business he owned in Sand City.

Kyle owned and operated Kyle Racing since November 1997. He also admitted that he told his employees to not issue invoices to people who paid in cash. Kyle said he did that to underreport his income to the IRS and use the cash he received to buy money orders from various post offices.

Kyle admitted that between August 8, 2007 and March 22, 2014, he “structured” his cash purchases and money orders to avoid being caught.

According to Kyle’s plea agreement, he bought more than $825,000 worth of money orders between August 2007 and March 2014.

Kyle then used the money orders to buy cars and jewelry. He acknowledged that the tax loss for 2007 through 2013 was between $500,000 and $1,500,000.

The maximum sentence for willfully making and subscribing to a false tax return is three years in prison and a fine of $250,000. The maximum sentence for structuring currency transactions to avoid reporting requirements is 10 years in prison and a fine of $500,000.

Kyle is free on bond and is scheduled to face a judge on August 21, 2017 for sentencing.