A Jacksonville minister pleaded guilty today to obstructing the IRS’s efforts to collect his tax debts.
According to court documents and statements made in court, Brian Carn, Jr. operated a ministry under various names, including Healing House Ministries, Inc., Brian Carn Ministries, Inc., and Kingdom Culture City Churches. In 2016, Carn filed his tax return for 2015 that properly reported that he earned more than $1.4 million in income and owed more than $600,000 in taxes. He did not, however, pay those taxes to the IRS and instead came up with a scheme to deceive the IRS.
A few months later, when the IRS attempted to collect his unpaid taxes – including by placing liens on his properties and attempting to levy his bank accounts – Carn amended his 2015 tax return and falsely removed nearly $1.3 million in income that he previously reported. To accomplish this, Carn hired a new accountant and provided him with a fictitious, backdated employment agreement that provided for an annual salary of $120,000 and an annual parsonage allowance of $24,000. Carn represented to his accountant that this was all the income he earned for the year. Carn represented third parties on credit applications, financial account openings, and lease applications, and otherwise knew that the income he actually earned far exceeded the purported salary in the employment agreement provided to the new accountant..
In the following years, operating under the premise of the fictitious employment agreement, Carn filed a series of other tax returns that drastically underreported his true income. But in 2020, he stopped filing tax returns, despite continuing to earn income by using ministry funds to pay for personal expenses.
Finally, when the IRS was trying to collect the outstanding taxes, Carn made a number of false representations and material omissions to the IRS to conceal his assets and income.
Carn’s obstruction caused a loss to United States of between $550,000 and $1,500,000. Carn faces a maximum penalty of three years in prison.
Assistant Attorney General A. Tysen Duva of the Justice Department’s Criminal Division made the announcement.
IRS Criminal Investigation is investigating the case.
Assistant Deputy Chief David Zisserson and Trial Attorney Max Wilner-Giwerc of the Criminal Division, Tax Section are prosecuting the case, with the assistance of the U.S. Attorney’s Office for the Middle District of Florida.