Former CEO sentenced for federal tax evasion

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A Carmel executive has been sentenced to six months in a residential community center for federal tax evasion, the U.S. Attorney’s office announced Tuesday.

Joseph C. Scott, 54, the former CEO at KSM Profit Advisors LLC, was convicted of underreporting his income taxes from 2005 to 2009, resulting in unpaid taxes of nearly $600,000.

U.S. District Judge Jane Magnus-Stinson ordered Scott to serve three years of supervised release after being released from the community center, including one year with electronic monitoring.

According to court papers, Scott, a CPA, was the sole owner of Indianapolis-based JS&A Inc., which provided business consulting services. In 2001, Scott formed a partnership with KSM Business Services, a subsidiary of Indianapolis-based accounting firm Katz Sapper & Miller, to form KSM Profit Advisors.

Scott's role was to run the business and provide consulting services to its clients. The business agreement called for Scott’s company, JS&A, to receive fees in return for his role in providing services.

From 2005 to 2009, Scott failed to prepare federal tax returns for JS&A, allowing him to withhold nearly $2 million in income, resulting in almost $600,000 in unpaid taxes.

 

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