A couple who didn’t file IRS returns for 13 years will spend time in prison for evading more than $4 million in taxes.
U.S. District Judge Derrick K. Watson on Thursday sentenced Calvin Kim, 55, to 36 months in prison. His wife, Chun Cha Kim, 64, was sentenced to 12 months, according to the U.S. Attorney’s office in Honolulu.
Calvin Kim pleaded guilty to conspiring to defraud the government and Chun Cha Kim pleaded guilty to willfully failing to pay taxes, according to a press release. The couple skipped out on taxes from 1999 through 2012.
In addition to prison sentences, they were ordered to pay back taxes and penalties amounting to $1,969,463 and $1,937,267, respectively; face criminal fines of $250,000 and $100,000, respectively; and both agreed to pay IRS fraud assessments, which could amount to an additional civil penalty of $3 million. According to information produced to the court, the Kims already have paid more than $4 million in back taxes and interest, U.S. Attorney Florence T. Nakakuni said.
The Kims operated two companies that sold heating pads and other products, and in October 2000 became followers of so-called “tax protesters,” according to the U.S. Attorney’s office.
Court documents show that from 2005 to 2012, their business tax returns showed earnings ranging from $418,238 to $971,983 for Calvin Kim for each year, and $271,564 to $1,000,562 for Chun Cha Kim.