The owner of Hi-Lake Liquors on Lake Street calls his run-in with the IRS a "misunderstanding." The U.S. Justice Department calls it tax evasion.
Federal prosecutors said Wednesday that Luke Jacob's failure to report $486,000 in income in 2008 cost the government $75,488 in lost tax revenue.
Charged with one count of tax evasion, Jacob faces a potential maximum of five years in prison if convicted.
Reached by phone Wednesday morning, Jacob said he believes he reported the income and the charges stem from "clerical errors" and a "misunderstanding."
"The accountant and the tax lawyers are working on it," Jacob said.
Hi-Lake, located on Lake Street near Hiawatha Avenue, remains open for business.
