DAKOTA DUNES, S.D. (KCAU) — The president of a cosmetics business located in North Sioux City has entered a plea for alleged tax evasion.  

According to court documents filed with the United States District Court of South Dakota Southern Division, James R Winckler, of Dakota Dunes, pleaded guilty as part of a plea agreement to three counts of willful failure to file returns and one count of filing a false income tax return.  

Winckler allegedly received a gross income of more than $13,850 in 2015, 2016, and 2017. By law, the amount earned required him to file taxes by mid-April of each year, which he allegedly did not, according to the documents.   

According to the Factual Basis Statement filed with the court, Winckler began working for the business his father started in 1992 and became president in 2015. 

The statement specified that Winckler allegedly signed and dated his 2012 income tax return on April 14, 2016. The 2012 return did not include the $452,771.61 that was used to pay for the new home that Winckler had purchased.  

Winckler allegedly represented to the IRS that the $452,771.61 was for a home mortgage rather than taxable income, which was not correct according to the statement.  

The plea agreement document stated that by pleading guilty to filing a false income tax return, Winkler faces a maximum sentence of three years in prison, a $250,000 fine, and one year of supervised release.  

By pleading guilty to three counts of willful failure to file returns, Winckler faces a maximum sentence of one year in prison, a $25,000 fine, and one year of supervised release. Additionally, restitution may be ordered. 

Winckler’s sentencing is set for January 9, 2023.