Byron Center Man Sentenced to Prison for Evading $868707 in Taxes

GRAND RAPIDS, Mich. — James Scholten, a resident of Byron Center, was sentenced May 12, 2026, in U.S. District Court for the Western District of Michigan for tax evasion and ordered to pay $868,707 in taxes due to the United States.

The case affects a single individual taxpayer who underreported or failed to pay nearly $870,000 in federal income taxes. The restitution figure represents the full amount determined owed by the court.

Prior to sentencing Scholten operated without satisfying his tax liability. The new judgment establishes a prison term, immediate payment obligation, and post-release supervised conditions that require full satisfaction of the debt. The payment order takes effect immediately upon the May 12 judgment.

The sentencing obliges the IRS to pursue collection against Scholten's assets and future income. It also requires the U.S. Attorney's Office for the Western District of Michigan to monitor compliance during incarceration and supervised release. Federal probation officials must now incorporate the restitution order into Scholten's supervision plan, with any default triggering additional enforcement proceedings.

The case forms part of the department's ongoing initiative to prosecute individual tax evasion, which supplies revenue recovery that directly funds general government operations.

This sentencing follows standard procedure under Title 26 of the U.S. Code for willful failure to pay taxes. The Justice Department has pursued similar individual restitution orders in the Western District of Michigan throughout the past decade, each requiring defendants to repay the precise deficiency calculated by the IRS and affirmed in court.

The original charges stemmed from an investigation that identified unreported income and unpaid liabilities totaling the $868,707 figure now converted into a binding judgment.

Primary sources: U.S. Department of Justice