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Clarion brothers sentenced for tax evasion

SIOUX CITY — Two Clarion brothers have been sentenced to 30 days in federal prison and $30,000 fines after pleading guilty to tax evasion charges.

Scott Stecher, 61, and Doug Stecher, 58, pleaded guilty on Dec. 9, 2020, and were sentenced this week.

The brothers ran a farming operation together while also farming their own land. According to a press release from the United States Attorney’s Office Northern District of Iowa, each brother admitted to diverting income from their farming operations into bank accounts their accountant did not know about for tax years 2011 through 2013. The accountant then prepared tax returns for each brother, which they signed knowing that the returns did not report each of their full incomes.

Over the three years, Doug Stecher hid $718,996 of income from the IRS and paid $240,053 less in income tax than he should have. Scott Stecher hid $448,059 of income and paid $183,785 less in income tax for those three years.

“Today’s sentencnigs of Scott Stecher and Doug Stecher show that enforcement of our tax laws is vital to maintaining a fair and honest system,” said David Talcott, acting special agent in charge of the IRS Criminal Investigation division in the St. Louis Field Office. “There are consequences for individuals who intentionally conceal income and evade taxes that includes going to jail and paying back all the taxes owed plus steep penalties and interest.”

Following their 30 days in federal prison, each brother must serve a two-year term of supervised release.

The brothers were released on the bond previously set and are to surrender to the Bureau of Prisons on a date yet to be set.

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