A Hillsville, Virginia construction company owner faces potential prison time after pleading guilty to filing false tax returns over several years.

Court documents and statements presented in court revealed that Timothy Agnew, the owner and operator of Red Hill Construction, deliberately underreported his income on personal tax returns from 2017 to 2021.

Agnew's scheme involved omitting over $2 million in gross receipts from construction projects, particularly those where customers did not file IRS Form 1099 to report their payments. This allowed him to evade significant tax liabilities.

In total, Agnew's actions resulted in a tax loss to the IRS of more than $375,000.

Prosecutors emphasized the severity of the offense, noting that tax fraud undermines the integrity of the system and places an unfair burden on honest taxpayers.

Agnew is scheduled to be sentenced on April 3. He faces a potential prison sentence, substantial fines, and an order to repay the taxes owed, including penalties and interest.

This case highlights the importance of compliance with tax laws and serves as a warning to others who may consider underreporting income to avoid taxes.