Steven Darbee, a 50-year-old former resident of Brighton, Colorado, has been sentenced to just over one year in federal prison for tax evasion. The sentencing was announced by the U.S. Attorney’s Office for the District of Colorado.
Court documents show that Darbee stopped filing tax returns with the IRS after 2014. From April 2013 through January 2021, he submitted false Form W-4s to his employers, claiming multiple dependents so that federal income taxes would not be withheld from his paychecks. Although only two allowances were permitted, Darbee claimed as many as 99 dependents during this period and later declared himself “exempt” from paying federal taxes in 2021. He did not file any tax returns or pay taxes owed for those years despite having opportunities to do so. Attempts by the IRS to bring him into compliance were unsuccessful.
“‘Our office will hold tax cheats accountable,’ said United States Attorney Cole Finegan. ‘Everyone must pay their taxes, and if you don’t, there will be consequences.’”
IRS Criminal Investigation Special Agent in Charge Todd Martin commented: “‘Attempting to defraud the IRS by falsifying Form W-4s unfairly shifts the tax burden to honest American taxpayers and criminals must know they will not get away with it,’ said IRS Criminal Investigation (CI) Special Agent in Charge, Todd Martin. ‘CI special agents identified more than $5.5 billion in tax fraud last year and we will remain committed to holding tax cheats accountable.’”
United States District Court Judge Nina Y. Wang handed down Darbee’s sentence on January 10, 2024. In addition to incarceration, Darbee was ordered to pay $308,370.59 in restitution covering taxes owed, interest, and penalties. After serving his prison term, he will also complete three years of supervised release.
The Internal Revenue Service-Criminal Investigations conducted the investigation into Darbee’s actions while Assistant United States Attorney Martha A. Paluch prosecuted the case.
Case Number: 23-cr-00099
