Nacogdoches Couple Indicted, Accused of Tax Violations

BEAUMONT – A federal grand jury has indicted a Nacogdoches couple for alleged federal tax violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales Friday. Reggie Cotton, 52, and Deborah Cotton, 57, were indicted on June 20, 2012 and charged with conspiracy to make a false income tax return and two counts of making a false income tax return.

According to the indictment, it is alleged that beginning in 2002, the Cottons conspired to conceal income they received from their employment with D&R Cleaning Services in an attempt to avoid paying federal income tax due totaling $45,361.00 and $52,451.00 for 2004 and 2005. Additionally, it is alleged that the Cottons filed false income tax returns which did not include a Schedule C, Profit and Loss From Business for D&R Cleaning Services for 2004 and 2005. The defendants are scheduled for an initial appearance before U.S. Magistrate Judge Zachary Hawthorn on July 10, 2012. If convicted, the defendants each face up to 5 years in federal prison.