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A CPA From Sioux City Was Cleared of Charges of Submitting False Tax Returns

A federal jury in Sioux City on Thursday found one of the partners at the oldest accounting firm in the city not guilty of filing false personal income tax returns and providing fraudulent information to IRS auditors.

David Schmit, a resident of Sioux City, was brought before the United States District Court in Sioux City on three charges: one count each of filing false tax returns for the tax years 2012-2014, and one count each of corruptly obstructing and impeding the due administration of the Internal Revenue Code.

Schmit summed up the events of the preceding half decade and discussed the support he has received in a statement that was distributed by his legal team.

“Even though I was certain of my innocence and had the support of those who know me well, fighting the resources of the federal government for the past five years and this trial were very difficult,” Schmit said.

“I was confident in my innocence and had the support of those who know me well.” “I am looking forward to the day when I will finally be able to put the past behind me and move on with my life.


I am extremely appreciative of the thoughtful consideration that the jury gave to the facts, as well as the expert guidance that I received from my legal team and the unwavering support that I received from my family.”

In 2019, Schmit, a partner at King, Reinsch, Prosser & Co., also known as KRP, was indicted for his participation in illegal acts as a result of the fact that he was the subject of an inquiry into the matter. These crimes included fraud, money laundering, and securities fraud.

He was dealing with his legal issues, so he took some time off from the company while he was there.

In the statement that his legal team released, they did not address the question of whether or not he will continue to be on a leave of absence for personal reasons for the time being or when he will return to work.

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Schmit was accused of improperly reporting and exaggerating certain deductions because he failed to reduce the purchase price by the value of a depreciated trade-in for farm equipment.

As a consequence, Schmit’s personal tax returns contained inaccurate information regarding the amount of income he had earned. During the course of the audit, he allegedly gave the Internal Revenue Service fraudulent invoices and receipts.

He was also charged with this crime. These accusations did not pertain to any of his customers in any way.

His attorney stated that the allegations reflected “a good-faith tax disagreement” regarding purchases of equipment for Schmit’s family farm operations. After the verdict was announced, Schmit’s legal team stated that they believed their client “was subjected to a rush to judgement by the IRS.”

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