Furniture Store Owner Sentenced for Sales Tax Evasion

Sacramento – The California Department of Tax and Fee Administration (CDTFA) announced today that Michael Steven Rock (Rock), 63, of Roseville, California, pled guilty to three felony counts of sales tax evasion, and one felony count for filing a false return with the California Franchise Tax Board (FTB).

CDTFA and FTB conducted a joint investigation of the business, Rock Bottom Beds, and uncovered a tax scheme by Rock that included under-reporting of both sales tax and California income tax. During the period of July 1, 2008, through June 30, 2012, Rock collected nearly $300,000 in sales tax from his customers that he failed to pay to the State of California. In addition, he did not report income to FTB of more than $77,000 for 2011.

Rock was sentenced to 365 days in jail, to be followed by five years formal probation. He was ordered to pay $701,430 in restitution to the CDTFA and $209,499 in restitution to the FTB. Placer County Deputy District Attorney Tyson Page prosecuted the case.

To report suspected sales, fuel or cigarette and tobacco products tax evasion, contact the CDTFA Investigations Division at 1-916-324-0105 or the Tax Evasion Hotline at 1-888-334-3300.

Note: This news release may discuss complex tax laws and concepts. It may not address every situation, and is not considered written advice that may be relied on, pursuant to California Code of Regulations, title 18, sections 1705 and 4902. Changes in tax law or regulations may have occurred since the time this news release was written. If there is a conflict between the text of this news release and the law, decisions will be based upon the law and not this news release. For specific help, please contact the CDTFA at 1-800-400-7115.