Virginia Construction Company Owner Pleads Guilty to Filing False Tax Returns

A Virginia man pleaded guilty today to filing false tax returns underreporting the income he received through his construction company.

According to court documents and statements made in court, Timothy Agnew owned and operated Red Hill Construction (RHC), which was located in Hillsville, Virginia. RHC repaired and installed roofs, remodeled homes and built home additions. Between 2017 and 2021, Agnew filed false personal tax returns that substantially underreported his gross receipts, and thus his income, from RHC. Specifically, Agnew omitted over $2,000,000 in gross receipts earned from construction projects for which the customers did not directly report those payments to the IRS, through IRS Form 1099. In all, Agnew caused a tax loss to the IRS of over $375,000.

Agnew is scheduled to be sentenced on April 3. He faces a maximum penalty of three years in prison as well as a period of supervised release, restitution and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Zachary T. Lee for the Western District of Virginia made the announcement.

IRS Criminal Investigation is investigating the case.

Trial Attorney Brian Flanagan of the Tax Division and Assistant U.S. Attorney Lee Brett for the District of Western District of Virginia are prosecuting the case.