Felony fraud, tax charges filed against JB's Piano Bar owner

A Missouri Department of Revenue investigation into tax and bank records of Joplin businessman Jon Buck has resulted in the filing of charges of filing false sales tax returns and failure to pay sales tax due.

Twenty felony counts were committed with the intent of defrauding the state of Missouri, according to the probable cause statement.

A 1:30 p.m. Monday, June 5, arraignment is scheduled for Buck, 35, before Judge John Nicholas in Jasper County Circuit Court Division 4 in Carthage.

The probable cause statement, written by is printed below:

INVESTIGATIVE FACTS 

1. I am currently assigned to an investigation of Jon Thomas Buck (hereinafter referred to as Buck) and JB's Piano Bar LLC (hereinafter referred to as JBS Piano Bar).

 2. Buck of JB's Piano Bar, filed Articles of Organization for a Limited Liability Company with the Missouri Secretary of State’s Office on September 6, 2010, and received Charter Number #LC1083302. 

According to the Missouri Secretary of State's Office, the company is still active as of the time this probable cause statement was written. 

3. The Missouri Department of Revenue Integrated Tax System (MITS) files shows that on or about October 16, 2010, Buck, member/owner of JB's Piano Bar, applied for a sales tax license and was assigned Missouri Tax Identification Number 20933789 (sales tax license).

4. JBsPiano Bar is a retail establishment which serves food and alcohol and offers various forms, of entertainment. The Missouri Department of Revenue Individual Income Tax System (MINITS) files show that Buck filed federal and state of Missouri income tax returns, for tax years 2014 and 2015. 

For the tax year 2014, Buck completed a federal 1040 Schedule C form for JB’s Piano Bar. According to Buck's federal income tax return, Buck reported that JB's Piano Bar had two hundred eighty seven thousand three hundred thirty seven dollars ($287,337.00) in gross sales. For the tax year 2015, Buck completed a federal 1040 Schedule C form for JB's Piano Bar. 

According to Buck's federal income tax return, Buck reported that JB's Piano Bar had four hundred twenty two thousand eight hundred forty seven dollars ($422,847.00) in gross sales. In reviewing sales tax returns filed quarterly for JB's Piano Bar between the quarterly periods ending December 31, 2013 through March 31, 2016, I discovered discrepancies when comparing them to federal income tax returns filed by Buck. 

In June 2016, I issued subpoenas to Mid-Missouri Bank-and Southwest Missouri bank requesting financial documents pertaining to Buck and his associated businesses including, JB's Piano Bar. 

During my analysis, I located a small-business checking account (Acct #4004) held at Mid-Missouri bank for JB's Piano Bar. Buck was listed as an authorized signer on the account. This account was opened in September 2013. When reviewing the monthly statements, I observed numerous deposits from Heartland Payment Systems, a credit card processing company. 

For the quarterly sales tax period ending December 31, 2013, I discovered forty four thousand seven hundred sixty four dollars and Sixty-nine cents ($44,764.69) in taxable sales. According to the quarterly sales tax return filed by Buck, he reported twenty thousand four hundred fifty seven dollars and twenty-two cents ($20,457.22) in taxable sales, a difference of twenty four thousand three hundred seven dollars and forty-seven cents ($24,307.47). 

For the quarterly sales tax period ending March 31, 2014, I discovered fifty five thousand five hundred forty four dollars and eighty-three cents I ($55,544.83) in taxable sales. According to the quarterly sales tax return filed by Buck, he reported sixteen thousand eight hundred thirty three dollars and ninety-four cents ($16,833.94) in taxable sales, a difference of thirty eight thousand seven hundred ten dollars and eighty-nine cents ($38,710.89).

For the quarterly sales tax period ending June 30, 2014, I discovered forty one thousand five hundred ten dollars and eighty-eight cents ($41,510.88) in taxable sales. According to the quarterly sales tax return filed by Buck, he reported sixteen thousand five hundred twenty two dollars and twenty one cents ($16,522.21). in taxable sales, a difference of twenty four thousand nine hundred eighty eight dollars and sixty-seven cents ($24,988.67). 

For the quarterly sales tax period ending September 30, 2014, I discovered thirty one thousand seven hundred fifty one dollars and forty-seven cents ($31,751.47) in taxable sales. According to the quarterly sales tax return filed by Buck, he reported twelve thousand eight hundred seventy four dollars and fifty-three cents ($12,874.53) in taxable sales, a difference of eighteen thousand eight hundred seventy six dollars and ninety-four cents ($18,876.94). 

For the quarterly sales tax period ending December 31, 2014, I discovered thirty three thousand three hundred eighty three dollars and fifty-two cents ($33,383.52) in taxable sales. According to the quarterly sales tax return filed by Buck, he reported twenty thousand one hundred eighty six dollars and fifty-two cents ($20,186.52) in taxable sales, a difference of thirteen thousand one hundred ninety seven dollars ($13,197.00). 

For the quarterly sales tax period ending March 31, 2015, I discovered sixty one thousand three hundred dollars and fifty-six cents ($61,300.56) in taxable sales. According to the quarterly sales tax return filed by Buck, he reported twenty one thousand seven hundred eighty five dollars ($21,785.00) in taxable sales, a difference of thirty nine thousand five hundred fifteen dollars and fifty-six cents ($39,515.56). 

For the quarterly sales tax period ending June 30, 2015, I discovered one hundred sixteen thousand three hundred ninety five dollars ($116,395.00) in taxable sales. According to the quarterly sales tax return filed by Buck, he reported twenty four thousand one hundred ninety two dollars and thirty nine cents ($24,192.39) in taxable sales, a difference of ninety two thousand two hundred two dollars and Sixty-one cents ($92,202.61). 

For the quarterly sales tax period ending September 30, 2015, I discovered one hundred seven thousand one hundred fifty five dollars ($107,155.00) in taxable sales. According to the quarterly sales tax return filed by Buck, he reported fifteen thousand seven hundred sixty two dollars and thirty-three cents ($15,762.33) in taxable sales, a difference of ninety one thousand three hundred ninety two dollars and sixty-seven cents ($91,392.67).

For the quarterly sales tax period ending December 31, 2015, l discovered seventy six thousand one hundred ninety one dollars and forty-seven cents ($76,191.47) in taxable sales. According to the quarterly sales tax return filed by Buck, he reported eighteen thousand eight hundred seventy five and fifty-three cents ($18,875.53) in taxable sales, a difference of fifty seven thousand three hundred fifteen dollars and ninety-four cents ($57,315.94). 

For the quarterly sales tax period ending March 31, 2016, I discovered seventy eight thousand one hundred forty nine dollars and ninety-five cents ($78,149.95) in taxable sales. According-to the quarterly sales tax return filed by Buck, he reported nineteen thousand four hundred fifty six dollars ($19,456.00) in taxable sales, a difference of fifty eight thousand six hundred ninety three dollars and ninety-five cents ($58,693.95). 

On July 12, 2016, I attempted to contact Buck had JB's Piano Bar, but the business was closed. I left a message with an employee of another business Buck owned and requested that Buck contact me. A short time later, l received a phone call from Buck. I briefly explained to Buck that there are inconsistencies in his income tax returns and sales tax returns filed for JB’S Piano Bar. l asked Buck what credit card processing company he used for JBsPiano Bar and he stated Heartland Payment Systems. 

Buck stated he would review his business records and contact me back. On July 14, 2016, I received another call from Buck. During this phone interview, we discussed the inconsistencies with the taxable sales reported on his quarterly sales tax returns and the gross sales reported on his income tax returns. I asked Buck if he had lowered the amount of taxable sales on his sales tax returns in order to pay less sales tax. Buck stated, "I have done that once or twice. I’m going to be real honest; I'm not going to lie to you."

Buck has willfully, with intent, defrauded the state of Missouri, by falsifying ten (10) quarterly sales tax returns for the quarterly periods ending December 31, 2013 through March 31, 2016 and failed. to pay sales tax owed to the state of Missouri for ten (10) quarterly sales tax periods ending ’ December 31, 2013 through March 31, 2016.

The probable cause statement ends with an assessment of how much money Buck allegedly failed to pay the state in sales tax:

As a result of the criminal acts that Buck committed, the state of Missouri has incurred a loss in the amount of seventy eight thousand five hundred ninety five dollars and twenty-eight cents ($78, 595.28). This total includes a calculation of sales tax due based off previous sales tax returns filed, analysis of bank records, interest, penalties for failure to file/pay quarterly sales tax and fraud penalties for quarterly sales tax periods ending December 31, 2013 through March 31, 2016.