Date: July 14, 2025
Contact: newsroom@ci.irs.gov
Kansas City, MO – An Independence, Mo., attorney has been sentenced to federal prison for evading payment of $794,540 in income taxes, announced Acting U.S. Attorney Jeffrey P. Ray today.
John C. Carnes pleaded guilty to tax evasion on Nov. 25, 2024, and was sentenced to 21 months in federal prison today by U.S. District Judge Howard F. Sachs. Carnes was also ordered to pay restitution in the amount of $794,540.
According to court documents, Carnes admitted that he willfully attempted to evade paying his personal income taxes for tax years 2012 through 2018. Carnes kept his income in his attorney trust accounts, then withdrew cash from his attorney trust accounts to pay for personal and business expenses. An attorney trust account is a bank account in which a lawyer has a fiduciary duty to hold property of clients or third persons, including prospective clients. It is for funds that are in a lawyer’s possession in connection with representation, separate from the lawyer’s own property.
Carnes had two trust fund accounts. He withdrew $444,527 in cash from one account from 2016 through 2019, and he withdrew $144,364 from the second account from 2013 through 2015. Carnes used the cash to gamble and pay personal expenses.
Carnes deposited $232,000 in fees received for services provided in the sale of the former Rockwood Golf Course property in November 2017 and the Missouri City Power Plant project, and other income, into his attorney trust accounts.
The total tax loss to the IRS for tax years 2012 through 2018, because of Carnes’s tax evasion, totaled $618,949. In addition, relevant conduct consists of unpaid federal income tax for the tax years 1990-1993, 1996-2003, and 2005, totaling $175,590. The total relevant conduct is $238,513, resulting in a total tax loss of $794,540.
From 2009 to 2020, the IRS continuously engaged in various forms of investigative and enforcement activity regarding Carnes’s outstanding tax liabilities.
This case was prosecuted by Assistant U.S. Attorneys Rudolph R. Rhodes IV and Paul S. Becker. It was investigated by IRS Criminal Investigation.
IRS Criminal Investigation (IRS-CI) is the law enforcement arm of the IRS, responsible for conducting financial crime investigations, including tax fraud, narcotics trafficking, money laundering, public corruption, healthcare fraud, identity theft and more. IRS-CI special agents are the only federal law enforcement agents with investigative jurisdiction over violations of the Internal Revenue Code, obtaining a 90% federal conviction rate. The agency has 19 field offices located across the U.S. and 14 attaché posts abroad.