A Butte County man today pleaded no contest to two counts of failure to file his state income tax returns, according to the Franchise Tax Board (FTB).
Reginald E. Smart, Jr., 58, of Oroville, was arrested in May and charged with failing to file his 1996 through 1998 state income tax returns. Investigators say Smart failed to report income of more than $1.4 million over the three-year period. Smart ignored repeated requests to file state income tax returns for the years in question. Smart owns and operates a public scales company in Oroville.
"In cases where the guilty are really trying to cheat all taxpayers, we consider the offense quite serious," said Butte County District Attorney Michael Ramsey. "In these troubled times everyone needs to pull their own share. Those that don't, we will prosecute vigorously."
Smart was identified through FTB's non-filer program. Each year, the FTB sorts through more than 220 million income records and matches them against tax returns filed. Those with California income who do not file are sent a letter asking for their past due returns. Many people file their tax returns upon request. Those that do not receive tax assessments.
Smart could receive up to two years in county jail together with fines, restitution of taxes, penalties, interest, and costs of the criminal investigation.
Smart's next court date is October 31, 2002, for sentencing.