Paradise Valley man sentenced to 21 months in prison for tax evasion

PHOENIX — A Paradise Valley businessman was sentenced last week to 21 months in prison for tax evasion.

John Propstra, 47, was also ordered to serve three years of supervised release and pay $700,000 in restitution to the Internal Revenue Service, according to the U.S. Department of Justice.

Propstra, who owned and operated several consulting companies, pleaded guilty to collecting federal employment taxes from clients and keeping a portion of them rather than paying them to the IRS.

He also filed fake employment tax returns to try to conceal the theft.

Paradise Valley Man Sentenced to Prison for Tax Evasion https://t.co/4044UDYG3Y

— US Attorney Arizona (@USAO_AZ) September 13, 2019

The DOJ said at one point he stopped filing employment tax returns altogether. He also did not file accurate wage reports with the Social Security Administration.

In tax years 2010 and 2011, Propstra failed to pay a total of $710,819 to the IRS.

The agency’s Criminal Investigation Division handled the case.

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