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Tax fraud charged to Maryland couple who own auto parts store

Tax fraud charged to Maryland couple who own auto parts store
Posted at 4:32 PM, Apr 17, 2018
and last updated 2018-04-17 16:32:54-04

A couple who operate a used autoparts store and scrap yard were indicted on charges of conspiracy to defraud the United States and four counts of filing false tax returns. 

Robert M. Underwood, 71, and his wife Deborah J. Underwood, 62, both of Clinton, Md., operated the company under the names "B Underwood's Used Auto Parts" and "B Underwood Used Auto Parts, LLC." from 2009-2012. The business claimed to buy used and salvaged cars, then stripping them for parts to resell at Baltimore-area scrap yards. 

According to the United States Attorney for the District of Maryland, the indictment charges the Underwoods conspired to hide the cash revenue from the sale of scrap metal from their accountants and from IRS auditors. The Underwoods then allegedly filed false tax returns that did not include all the receipts of the business.

The Underwoods face a maximum penalty of five years in prison for the conspiracy charge and three years in prison for each false tax count.