A warrant has gone out for the arrest of a 51-year-old Lincoln business owner accused of tax evasion.
The Lancaster County Attorney's Office on Monday charged Jeremey Woolwine, the owner of AJ's Reptarium at 5340 Cornhusker Hwy., with 13 counts in all, including four counts of tax evasion for 2019-2022, three counts of filing fraudulent tax returns, three counts of failing to pay sales tax and three counts of theft by unlawful taking.
All of the charges are felonies.
In an affidavit seeking a warrant for Woolwine's arrest, Tom Domanski, an investigator with the Nebraska Department of Revenue and special deputy state sheriff, said Woolwine was aware customers were being charged sales tax by using his Square card processing account and he was responsible for turning the money in to the state.
But, Domanski alleged, Woolwine failed to until he was assessed by the state Department of Revenue and didn't file sales tax forms that accurately reflected the amount of sales tax due.
"He also willfully and intentionally avoided filing and paying income taxes to the state of Nebraska until he felt threatened by possible criminal prosecution," the investigator said.
Domanski said he started an investigation into AJ's Reptarium, a reptile store, in February. At the time, Woolwine, the owner, hadn't filed income tax returns as far back as 2018 and had only been assessed by the Revenue Department for not filing sales tax returns, he said.
After the investigator issued a subpoena for records to Block Inc., the owner of Square, an attorney contacted him on Woolwine's behalf and inquired about an investigation. Three weeks later, Woolwine filed income tax returns for 2019-2021.
Domanski alleged, in comparing the income tax returns against the income from bank account and Square records, Woolwine significantly underreported his gross income. He said the total tax due for 2018 through 2021 is more than $57,000. With penalty and interest, it amounts to more than $80,000.
He said Woolwine also underreported sales tax for tax years 2018-2021, leading to another $93,200 in tax liability due to the state including penalties and interest.
The alleged theft counts involved Woolwine charging sales tax but not remitting it to the state.
The Lancaster County Attorney's Office on Monday charged Jeremey Woolwine, the owner of AJ's Reptarium at 5340 Cornhusker Highway, with 13 counts in all, including four counts of tax evasion for 2019-2022, three counts of filing fraudulent tax returns, three counts of failing to pay sales tax and three counts of theft by unlawful taking.