ckford man sentencedfortax
filed tax returns and report-
evasron
sentenced Tuesday, May 3r-
to federai prison for feffi-
tax evasion, an4pmced U-S.
Attomey Donald Davis.
U.S. District JudgeRobed
Holmes Bell, Kilpatrick or-
dered that Kilpatrick serve
two years in federal prison
followed by two years of
supervised release. The
Judge' also ordered Kilpat-
rick to cooperate with the
IRS and pay restitution of
$85.014 for taxes owed in
2002. T\e Judge noted that
Kilpatrick also owes a to-
tal of $467,243.91 for tax
y earsl999 -2007, not includ-
ing interest and penalties.
Ki$atrick 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. In a written plea
agreement; Kilpatrick ac-
knowledged that did not any
pay federal income taxes on
income eamed from 1999-
2007, &nlng which time the
Kilpatrick Chiropractic Life
Center had gross deposits of
over $3,000,000.00.
According to court re-
cords, during 1999 through
2007, Kilpatrick was a
self-employed chiropractor
at Kilpatrick Chiropraotic
Life Center, Grand Rapids,
Michigan. Kilpatrick paid
himself through direct pay-
ments from his business
credit union account without
including any withholdings
Chiropractor Kerry Kilpatrick has been sentenced.
for state or federal payroll
taxes. Kilpatrick also used
the business credit union
accountto make direct pay-
ment on his home mortgage,
along with other personal
expenditures.
During 2001 through
2002, Illpatnck formed nu-
merousholding companies,
corporations. and enter-
prises that lacked any eco-
nomic substance and were
located in Nevada, Oregon,
andthe Republicof Panama.
He used the entities to evade
,EA{TIOT{
BI]SIIVESSES/
his income taxes, pay local
property taxes on his real es-
tate, and to hold the title on
his 1999 Ford Expedition,
$63,000Tiffin Motor Home,
and other real property. Af-
ter failing to file timely 1999
though 2005 personal tax
retums,
Intemal Revenue Service
personnel provided Kilpaf
rick with documents en-
titled "Why Do I Have To
Pay Taxes?" and "The Truth
About Frivolous Argu-
ments." In 2006, Kilpatrick
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616-696-36ss
ed over $1 million in adjus
inepme. but claimed
"A" deduc-
tiorn equal to the adjusted
gross income, causing zero
taxableincome.
At the sentencing hear-
ing, Judge Bell emphasized
that insteadofrelying on the
advice of professionals,like
CPAs and attomeys, Kilpat-l
rick chooseto follow the ad-
vice of "intemet goofballs"'
in determining whether hel
should pay taxes. "Thosgl
who chooseto disrespectth$il
law and flagrantly continue!
to use fiivolous arguments
will be held accountable,"i
saidSpecialAgentin Chargq
Erick Martinez."The law isl
crystal clear; people must{
file accurate returns and pay{
their taxes." {
This casewas investigated
by special agentsof the IRSI
Criminal Investigation andl
was prosecutedby U.S. At-i
torney Donald A. Davis l
and Assistant U.S. Attornevl
-
Raymond Beckering III. l
T