Grand jury indicts a Junction man in tax evasion case
A Grand Junction man was indicted by a federal grand jury on suspicion of evading taxes, an indictment unsealed Thursday that alleges an evasion of more than $188,000.
Sergio A. Murillo, owner of Mountain High Window Cleaning, is accused of a pattern of tax evasion between 2007 and 2010, during which time he claimed deficits each year on his Form 1040, according to the indictment.
In those years, Murillo maintained an account at US Bank under the name Sergio Murillo Mountain High Window Cleaning, into which a portion of the business’ receipts were deposited, according to the affidavit.
At the same time, he maintained several accounts at Wells Fargo under the name Sergio A. Murillo-Nunez, into which a portion of the business’ receipts also were deposited.
According to the indictment, Murillo instructed Mountain High clients to make checks payable to “Sergio A. Murillo” or “Sergio Murillo,” which he deposited in the personal Wells Fargo accounts.
Murillo then gave his tax return preparer only bank statements from the business’ US Bank account, according to the indictment.
On tax returns filed for years 2007 to 2010, Mountain High showed losses or, on the 2009 returns, a small annual income, according to the indictment.
For example, on the 2008 return, Mountain High showed a business income of -$30,779 for the calendar year and a tax bill of $0.
In reality, according to the indictment, Murillo’s total income that year was about $214,815, with a tax bill totaling about $63,867.
According to the indictment, Murillo told an Internal Revenue Service agent that “his customers determined whether to make checks payable to Mountain High or to Sergio Murillo personally, and that Mountain High’s invoices contained both names.”
He also reported having no other accounts besides the US Bank one.
The U.S. Attorney’s office will prosecute the case. Murillo faces a statutory maximum sentence of five years in prison for each of the four counts of which he is charged, as well as a period of supervised release, restitution and a fine not to exceed $250,000.