Florida man to pay nearly $700,000 after pleading guilty to understated tax filings

OCALA, Florida — Richard Underwood has pleaded guilty to three counts of filing false tax returns, according to United States Attorney Roger B. Handberg.

Underwood faces a maximum penalty of three years in federal prison on each count. A sentencing date has not yet been set.

According to court documents, Underwood’s tax returns from 2017 to 2019 overstated certain business expenses incurred by his company, KDG Consulting, Inc. Each year, these falsely reported expenses significantly reduced Underwood’s business income, which ranged from about $530,000 to $780,000, by hundreds of thousands of dollars. Underwood’s fraudulent conduct caused his taxable income to drop to $0 in 2017 and 2018, and $7,110 in 2019.

As part of his plea agreement, Underwood has agreed to pay $680,141 plus interest to the Internal Revenue Service, reflecting the taxes he failed to pay during those years.

This case was investigated by the Internal Revenue Service – Criminal Investigation and is being prosecuted by Assistant United States Attorney Belkis H. Callaos.