United States Attorney's Office for the Western District of Wisconsin
07/29/2025 | Press release | Distributed by Public on 07/29/2025 17:10
Middleton Nail Salon Owner Pleads Guilty to Tax Evasion
Press Release
Middleton Nail Salon Owner Pleads Guilty to Tax Evasion
Tuesday, July 29, 2025
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For Immediate Release
U.S. Attorney's Office, Western District of Wisconsin
MADISON, WIS. - Chadwick M. Elgersma, Acting United States Attorney for the Western District of Wisconsin, announced that Tam Phan, 40, Middleton, Wisconsin, pleaded guilty yesterday to tax evasion in connection to her nail salon business, Happy Nails & Spa, in Middleton.
Phan has been the operator and sole proprietor of Happy Nails & Spa since 2010. The government's investigation revealed that a large percentage of Happy Nails customers paid for their services with cash between 2021 and 2023. However, Phan's tax returns for that time period only reported the credit card sales. During the plea hearing, Phan admitted that she intentionally failed to report the cash sales from Happy Nails & Spa on her 2022 federal tax return.
U.S. District Judge William M. Conley scheduled Phan's sentencing for October 28, 2025. Phan faces a maximum penalty of 5 years in prison.
The charge against Phan was the result of an investigation by IRS Criminal Investigations. Assistant U.S. Attorney Aaron Wegner is handling the prosecution.
Updated July 29, 2025
Topic
Tax
Component
USAO - Wisconsin, Western
United States Attorney's Office for the Western District of Wisconsin published this content on July 29, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on July 29, 2025 at 23:10 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]