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Los Gatos Business Owner Sentenced to Prison for Failure to File State Income Tax Returns

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Public Affairs Office
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For Immediate Release

01.15.2013

Sacramento – A Los Gatos business owner was sentenced last Friday to two years in state prison for violating the terms of his probation by failing to file state income tax returns for 2000 through 2006 as ordered by the court and failing to file subsequent tax returns for 2007 through 2011, the Franchise Tax Board (FTB) announced.

Kurt Charles Scanlin, 54, pleaded guilty in May 2008 to 22 counts including five felony counts of failure to file state income tax returns. He was originally sentenced to one year of electronic monitoring, five years of formal probation, and ordered to file the delinquent tax returns for 2000 through 2006 and pay restitution of $89,484 to the FTB and $157,650 to the State Board of Equalization (BOE).

In addition to failing to file the delinquent income tax returns, Scanlin failed to pay the restitution in full. He still owes $76,910 to FTB and $135,497 to BOE, and can be subject to three years of supervised parole. Scanlin has been in custody in the Santa Clara Main Jail since his September 2012 probation was revoked.

Scanlin owned two businesses which sold custom printed business forms, label products, and artwork.

Santa Clara Superior Court Judge Arthur Bocanegra handed down the sentence at the end of Scanlin's probation hearing in Department 29 of the Santa Clara Hall of Justice. Santa Clara County Deputy District Attorney Daniel Carr prosecuted the case.

Anyone who has knowledge of tax fraud may call the FTB informant hotline at 800.540.3453.

FTB’s criminal investigation program identifies and investigates cases of tax evasion and tax fraud to encourage compliance with California income tax laws and maintain the public trust.

For more information on other taxes and fees in California, visit: taxes.ca.gov.

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