A husband and wife in Northern Colorado who owned a heating and plumbing business in Estes Park and later turned to financial planning for clients nationwide are accused of hiding millions of dollars from the federal government through a tax fraud conspiracy.
The husband, Timothy McPhee, was sentenced Dec. 16 for ignoring the warnings of accountants and attorneys who told him the tax shelter he sold to taxpayers across the country was illegal.
McPhee was ordered by a Denver federal judge to spend 12.5 years in prison for promoting and selling the tax shelter, according to case documents. Internal Revenue Service investigators estimated $159 million was paid into the tax shelter, and McPhee’s clients only paid taxes on about 2% of their income. This amounted to $45 million in unpaid federal income taxes, per the IRS…