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Chiropractor enters plea on tax evasion charge

Chiropractor enters plea on tax evasion charge

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SALT LAKE CITY (AP) -- An Ephraim chiropractor has pleaded not guilty to a federal tax evasion charge after allegedly failing to file income tax returns between 1999 and 2004.

Douglas R. Madsen, of New Jerusalem, entered the plea to the October indictment on Tuesday in U.S. District Court.

Prosecutors contend Madsen owes the government more than $1 million in unpaid income taxes, interest and penalties.

Madsen ran Madsen Chiropractic Inc., in Ephraim until 2004. Court papers say he sold the practice that year for $100,000, but allegedly lied about an IRS levy on the business.

Prosecutors also allege Madsen set up fraudulent trusts to hold some 19 properties in central Utah.

A trial is set for Feb. 2, 2010. If convicted, Madsen faces up to five years in federal prison and a $250,000 fine.

(Copyright 2009 by The Associated Press. All Rights Reserved.)

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