BEAUMONT — A Nacogdoches couple has pleaded guilty to federal tax violations. In an appearance yesterday before U.S. District Judge Ron Clark, Reggie Cotton, 53, and Deborah Cotton, 57, pleaded guilty to an information charging them with failing to file tax returns for the calendar year 2004. The defendants face up to one year in federal prison and restitution. A sentencing date has not been set.
Federal prosecutors say the Cottons were involved in running and operating D&R Services, a janitorial cleaning service. The Cottons had received gross income for 2004 totaling $207,857 for D&R Services which they failed to file a federal income tax return for. The Cottons knew they were required to file an income tax return because they had filed an income tax return for a separate janitorial company they had been involved with in the past.