A social media influencer from Phoenix is facing federal tax charges after prosecutors alleged he failed to report substantial income from his online business.
Charles Lewis Davis, owner of Forever Investments LLC, was indicted by a federal grand jury on two counts of making false statements on his tax returns. According to the indictment, Davis allegedly failed to tell his tax preparer about additional income earned through videos posted on YouTube, Facebook, Instagram, and other platforms.
Prosecutors claim Davis underreported income by:
$807,142 in 2020
$390,566 in 2021
The indictment also alleges the unreported funds were held in personal and business bank accounts, brokerage accounts, and cryptocurrency accounts.
Davis pleaded not guilty at his initial court appearance. If convicted, making a false statement on a tax return carries a maximum penalty of three years in prison and a $250,000 fine.
This case is a reminder that income from social media, side businesses, gig work, investments, and cryptocurrency is still taxable income. Even if funds move through multiple accounts or platforms, the IRS has tools to trace income and compare it against what was reported.
For business owners, influencers, contractors, and self-employed taxpayers, accurate reporting is critical. Relying on a tax preparer does not protect you if important information is withheld or records are incomplete.
If you have unfiled returns, unreported income, IRS notices, or concerns about past tax filings, don’t ignore the problem. Contact Ron Friedman CPA today for a free consultation. We’ll review your situation, explain your options, and help you take the next step toward resolving your tax issue.
