Pacific Palisades Attorney Arrested on State Income Tax Evasion Charges
Released: January 29, 2010
Sacramento – A Pacific Palisades attorney was arrested yesterday on five felony counts of state income tax evasion, the Franchise Tax Board (FTB) announced.
Allen J. Gross, 61, a partner in a Los Angeles law firm, was arrested without incident at his home by FTB special agents. According to FTB agents, Gross allegedly failed to file his 2003 -2007 state income tax returns and report the more than $2.3 million income he earned during these years. Gross owes the state more than $178,000 in unpaid tax. Penalties, interest and the cost of the investigation will be added to this amount.
Each tax count carries a maximum term of three years in state prison.
The failure to file income tax returns is part of the $6.5 billion tax gap California faces each year. The tax gap is defined as the difference between the tax that is owed and the tax that is due.
Gross was booked into the Inmate Reception Center. His bail is set at $178,000. The date of his arraignment is set for February 1, 2010 at 8:30 a.m. in Department 46 of the Clara Shortridge Foltz Criminal Justice Center.
Los Angeles County Deputy District Attorney David Berton is prosecuting the case.