Tax evasion trial set for Ephraim chiropractor Douglas Madsen

A trial has been scheduled for a Sanpete County man indicted in failing to pay more than $1 million in taxes, hiding other assets from the government and failing to file tax returns.

Douglas Madsen, an Ephraim-based chiropractor until 2004, made his first appearance in court Tuesday. He allegedly failed to pay taxes from 1999 to 2004 as well as in 1995. For those years, prosecutors say he owes the government $1.3 million. He is also charged with hiding his assets which he allegedly divided among various trusts until late 2003, when he transferred properties he owned to a shell company also owned by him in an effort to "hide those assets from the IRS," the indictment states.

Madsen is also charged with trying to sell his business and keep the funds from the IRS. According to the indictment, when Madsen went to sell his chiropractic practice, the IRS filed a levy requiring that the $100,000 payment be made to the agency. Madsen then tried to convince the buyer that the IRS couldn't file such a levy and that the money should go directly to him.

When Madsen was ordered to court to answer questions about his various assets, the indictment states that he never appeared, placing him in violation of the court order.

When faced with these various charges in court, Madsen pleaded not guilty. His case is scheduled to go to trial Jan. 2, 2010.

— Emiley Morgan