LONDON, Ky. (WTVQ)- Federal officials say a London physician was sentenced to three years in prison for falsely reporting his income as $0 on tax documents presented to the IRS from 2011 to 2015.
They say 69-year-old Werner Grentz also corruptly interfered with the IRS’ attempts to administer tax laws.
Dr. Grentz was also sentenced to an additional year in prison, for violations of the terms of his supervised release on a 2013 tax fraud conviction. This one-year prison term will run consecutively to Dr. Grentz’s three-year sentence, for a total of four years in prison.
Dr. Grentz was convicted in February 2018, following a jury trial in London.
According to the evidence at trial, Dr. Grentz submitted false Form 1040X and Form 1040NR documents to the IRS, claiming to have received $0 in income during the years 2011, 2012, 2013, 2014, and 2015, when in fact Dr. Grentz earned $726,148 during that time period.
The IRS determined that Dr. Grentz owed taxes of $237,860 on that income which he failed to report or pay. Dr. Grentz also took steps to impede collection efforts by the IRS and county clerks.
This was not Dr. Grentz’s first conviction for tax crimes. In 2014, Dr. Grentz was convicted of tax evasion, for willfully failing to pay more than $900,000 in taxes to the IRS. He was sentenced to 18 months in prison for that tax offense, and while he was on supervised release for the 2014 offense, committed the new tax crimes that resulted in his 2018 conviction. It was a violation of the terms of his supervised release to commit new federal crimes, and that violation resulted in the additional year of prison time.
In addition to his prison sentence, Dr. Grentz was ordered to pay restitution to the IRS of $237,860. He owes more than a million dollars in unpaid taxes to the IRS.
Under federal law, Grentz must serve 85 percent of his prison sentence; and upon
his release, he will be under the supervision of the United States Probation Office for a
term of five years.