Michael Lyadda, of Valencia, pleaded guilty to one count of filing a false federal income tax return, Form 1040, with the Internal Revenue Service (IRS) before U.S. District Judge Margaret M. Morrow.

Michael Lyadda, 43, was previously indicted on two counts of filing false federal income tax returns with the IRS. According to the indictment, Lyadda filed false federal income tax returns Forms 1040 by reporting false gross receipts on Line 1 of Schedule C for the years 2004 and 2005.

According to the plea agreement filed earlier this year, Lyadda filed a false tax return for the year 2004 and 2005, knowing that the tax return was false and contained incorrect information. Lyadda admitted that he received $344,000 in income for tax years 2004 and 2005 which he did not report.

As part of the plea agreement, Lyada agreed to enter into a closing agreement with the IRS to assess and collect the total tax for the years 2004 and 2005. The total tax loss is $117,875.

He also agrees pay restitution in the form of additional taxes, penalties, and interest owed the IRS prior to sentencing and that he is liable for the fraud penalty (75% of the tax due to the IRS) on the understatements of tax liability.

“As hard-working citizens are sitting down to prepare their tax returns, it is imperative that IRS remains vigilant in our pursuit of those taxpayers who fail to report all of their income,” commented N. Dawn Mertz, Acting Special Agent in Charge for IRS Criminal Investigation’s (CI) Los Angeles Field Office. “Today’s admission to filing a false tax return by Michael Lyadda, should serve as a deterrent to those contemplating filing a false tax return.”

At sentencing, scheduled for June 17, 2013, Michael Lyadda faces a maximum sentence of three years imprisonment; a one-year period of supervised release following imprisonment and a fine of $100,000 or twice the gross gain or gross loss resulting from the crime.

Michael Lyadda is being prosecuted by the United States Attorney Office for the Central District of California. The investigation is being conducted by Special Agents with the Internal Revenue Service Criminal Investigation.

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