LEXINGTON, Ky. (WTVQ) – A business owner, who previously admitted he underreported more than $5 million in income over the course of three years, has been sentenced to 30 months in federal prison.
On Tuesday, a U.S. District Judge sentenced 38-year-old Jarrod C. Breeding, of Letcher County, for making false statements on tax returns filed with the IRS. Under federal law, Breeding must serve at least 85 percent of his sentence.
Breeding, the owner of Southern Steel Recycling in Isom, Ky., previously admitted that, for tax years 2011, 2012, and 2013, he underreported his income, by more than $5 million. Under federal law, domestic financial institutions, such as banks, must report any cash transaction at their institution that exceeds $10,000, as a way to assist in detecting crimes such as tax evasion.
Breeding underreported his income, in part, by structuring transactions, to avoid this $10,000 limit and the institution’s reporting requirements. This resulted in large amounts of money never
being included on his bank statements. Then, when filing his tax returns, Breeding only reported the income that was actually included on his statements.
Breeding, who also owns 201 Speedway Racing in Isom, Ky., pleaded guilty in November 2016.