The owner of a company that distributes fasteners and machine parts was indicted in federal court Wednesday on three counts of tax evasion.
Larry Lester Larson, president, owner and sole shareholder of State Industrial Supply Corp., paid numerous personal expenses out of his corporation’s bank account from 2007 to 2009, according to the indictment.
The business, 7825 N. Hartman Lane, is located off Interstate 10, north of West Massingale Road. Larson could not be reached for comment.
Mark Larson, Larry’s son, said Friday his father semiretired from the business in 2010. Mark Larson said he now runs the day-to-day operations. He also said the business, which has 35 employees, also now has other shareholders.
Mark Larson is listed as company vice president in the Arizona Corporation Commission online records of companies. His father is listed as president in the records that were last updated in May 2013.
The indictment states that Larry Larson deducted personal expenses as business expenses on the corporation’s federal income tax returns.
In 2007, court records state Larry Larson underreported his individual taxable net income by about $115,409 and overreported business expenses by the same amount; in 2008 he overreported expenses for his business by about $142,881 and underreported personal taxable net income by some $140,733; and in 2009 overreported business expenses by about $139,462 and underreported his personal taxable net income by the same amount.
Among the personal expenses were payments to his housekeeper, repairs of classic cars, remodeling and maintenance costs for his house and a family member’s, and plastic surgery costs for a face-lift, the indictment says.
Other costs included hotel rooms for a wedding, golf club dues, purchases at Louis Vuitton, vacation home dues, a car lift at his house, an all-terrain vehicle, jewelry, airline tickets for a family trip to Italy and a Caribbean vacation.
These false deductions overstated business expenses, and the net income from his corporation was understated, says the indictment.
“This resulted in a reduced taxable income on Larson’s personal returns, thereby fraudulently decreasing his tax due and owed to the Internal Revenue Service,” according to the indictment.