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Craighead County Businessman Pleads Guilty to Tax Evasion

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A Craighead County man who owned an information technology company pleaded guilty Tuesday to tax evasion for a tax loss of nearly $180,000. 

Ronnie Lyn Drummond, 52, of Brookland, provided IT services to the Poinsett County Housing Authority and operated the business from his home, according to the indictment filed in the Eastern District of Arkansas. He didn’t have any employees.

An investigation found that Drummond failed to file tax returns for the tax years of 2008 through 2012, according to a news release from Jonathan Ross, U.S. attorney for the Eastern District of Arkansas. 

“When Drummond eventually filed returns for these years, his calculations reflected tax obligations, which Drummond failed to pay,” the news release said. 

Between 2014 and 2017, Drummond received gross receipts of $1.04 million for  labor and materials. 

In an attempt to hide his gross receipts, including income, from the Internal Revenue Service, Drummond cashed most of the checks he received, Ross said in the release. 

The tax loss, excluding interest and penalties, was $177,358. 

U.S. District Judge James M. Moody Jr. will sentence Drummond at a later date. He faces up to five years in prison, three years’ probation, and a fine of up to $100,000.

Drummond was indicted on May 4, 2023, and charged with one count of tax evasion and one count of failure to file taxes. In exchange for his guilty plea to tax evasion, the other charge was dismissed.

The case was investigated by the IRS with help from the Housing and Urban Development Office of Inspector General.

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