Athens Man Guilty of Federal Income Tax Violations

TYLER – 64-year-old Joseph A. Masso of Athens will turn over more than $2 million and faces possible prison time after pleading guilty to federal income tax violations, announced U.S. Attorney John M. Bales Friday. Masso was charged with making and subscribing to a false tax return for the calendar year 2011.

According to information presented in Court, Masso formed a Texas limited liability company known as Lone Star Western & Casual LLC in December 2007. Lone Star operated retail clothing stores in Athens, Corsicana, and Waxahachie, Texas. For tax years 2009-2011, Masso falsely understated the gross receipts for these businesses on his IRS Form 1040 Schedule C by more than $5 million. As a result, he falsely understated his tax liability for the three tax years by approximately $950,000.

At sentencing, Masso faces imprisonment for up to three years. Masso has already agreed to pay restitution in excess of $900,000 to the IRS as well as a civil fraud penalty of more than $450,000. In a related civil action, Masso agreed to forfeit $800,000 to the United States. The funds were originally seized during the execution of federal seizure warrants.