Charlotte Businessman Pleads Guilty To Tax Fraud

CHARLOTTE, N.C. - Michael Kahn, 66, of Charlotte, appeared before U.S. Magistrate Judge David C. Keesler today and pleaded guilty to filing a fraudulent income tax return, announced Russ Ferguson, U.S. Attorney for the Western District of North Carolina.

According to court documents, the defendant founded The Michael A. Kahn Family Foundation (The Foundation) in 2010 as a tax-exempt organization purportedly dedicated to advancing charitable, religious, and educational purposes. Kahn held all leadership roles within The Foundation, including Director, President, Treasurer, Secretary, and Chairman of the Board of Directors, and The Foundation had no other officers, board members, or employees. Between 2020 and 2023, Kahn transferred over $4.5 million from The Foundation to himself and failed to report those funds as income on his 2020 tax return filed with the IRS.

"Tax fraud increases the tax burden on Americans who follow the rules," said U.S. Attorney Russ Ferguson. "While people have the right to use tax strategy to legally reduce their taxes, we will prosecute those who go beyond that and break the law."

"Tax-exempt organizations are granted special status to serve charitable purposes, not to enrich those who control them," said Special Agent in Charge Donald "Trey" Eakins, IRS Criminal Investigation's Charlotte Field Office. "The defendant transferred millions of dollars from a tax-exempt foundation under his control to himself and did not report those funds as income. IRS Criminal Investigation remains committed to working with our partners in safeguarding the integrity of the tax system and ensuring that tax-exempt organizations are not used to conceal taxable income or evade federal tax obligations."

At sentencing, Kahn faces a maximum penalty of three years in prison for aiding and assisting in the preparation of a false tax return. A federal district court judge will determine the ultimate sentence after considering the U.S. Sentencing Guidelines and other statutory factors. A sentencing date has not been set.

The IRS-CI handled the investigation.

Assistant U.S. Attorney Caryn Finley of the U.S. Attorney's Office in Charlotte is in charge of the prosecution.

On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division (Fraud Division). The Fraud Division is laser-focused on investigating and prosecuting those who commit fraud against the American people. The Department's work to combat fraud supports President Trump's Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs.