Timothy M. O’Shea United States Attorney | U.S. Attorney for the Western District of Wisconsin
Timothy M. O’Shea United States Attorney | U.S. Attorney for the Western District of Wisconsin
Tam Phan, owner of Happy Nails & Spa in Middleton, Wisconsin, pleaded guilty to tax evasion on Monday. The announcement was made by Chadwick M. Elgersma, Acting United States Attorney for the Western District of Wisconsin.
According to court documents and statements during the plea hearing, Phan has operated Happy Nails & Spa as its sole proprietor since 2010. Investigators determined that a significant portion of customer payments between 2021 and 2023 were made in cash. However, only credit card sales were reported on Phan’s tax returns for those years. During the hearing, Phan admitted she deliberately did not report cash sales from her business on her 2022 federal tax return.
U.S. District Judge William M. Conley has scheduled sentencing for October 28, 2025. Phan could face up to five years in prison if convicted.
The investigation into Phan was conducted by IRS Criminal Investigations, and the case is being prosecuted by Assistant U.S. Attorney Aaron Wegner.
"This charge against Phan was the result of an investigation by IRS Criminal Investigations," according to the press release.
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