Michigan public accountant pleads guilty to tax evasion

(CBS DETROIT) - A Michigan public accountant has pleaded guilty to evading more than $318,000 in federal taxes, the U.S. Attorney's Office announced on Thursday.

Federal officials say Paul Kozowicz, 75, of Walled Lake, formed the corporation, FACS Inc., which provided accounting and consulting services, and did not declare the income he earned through the company on any individual or corporate tax return. Officials say Kozowicz also did not maintain any corporate books or records for FACS or complete the State of Michigan's annual corporate filing requirements.

He instead listed his part-time law firm salary as his only income on taxes and used the money he received under FACS as personal funds.

He admitted to $1.15 million of unreported income through the corporation and avoided paying about $318,243 in taxes, according to the U.S. Attorney's Office.

"Paul Kozowicz chose to enrich himself at the expense of the public by willfully concealing over a million dollars in taxable income from the IRS. As a financial professional, Kozowicz knew better. My office takes seriously anyone who evades their obligation to pay taxes, and today's conviction reflects our commitment to identify and prosecute such offenders," U.S. Attorney Dawn Ison said in a statement.

Sentencing is scheduled for Jan. 21, 2025. Kozowicz faces up to five years in prison and will be ordered to pay $318,423 in restitution after sentencing.