Tax Issue: Lobbyist In The Weed

Marijuana lobbyist failed to report more than $750,000.

A California lobbyist whose clients included illegal marijuana stores has been charged with filing a false tax return and failing to report more than $750,000 in income over a six-year period.

Carl A. Kemp, 43, of Long Beach, Calif., was the owner of the public relations firm The Kemp Group. In a plea agreement, Kemp admitted to receiving a total of $754,783 in income that he failed to report on his taxes for the years 2007 through 2012.

Kemp admitted that he owes the IRS a total of $210,661 to cover the back taxes due for those six years, as well as a civil fraud penalty.

“For years, Mr. Kemp failed to accurately report his income to the IRS, going so far as reporting zero taxable income for 2012 when his business brought in more than $200,000,” U.S. Atty. Eileen M. Decker said in a statement.

“Everyone, no matter what business they are engaged in, has a responsibility to fully report their income on their income tax returns.”

Posted on August 15, 2016