A Lexington County resident was arrested today following charges of state income tax evasion.

South Carolina Department of Revenue investigators charged Kerry Lee Highsmith, with two counts of income tax evasion for tax years 2006 and 2007. He is being held at the Greenville County Law Enforcement Center pending a bond hearing.

Highsmith, who utilized the services of an Upstate tax preparation business, is accused of claiming more than $49,000 in bogus tax deductions on his 2006 and 2007 state tax returns. During an audit of the tax returns, Highsmith submitted false documents to the Department in attempts to verify the fake deductions claimed on the returns.

The Department estimates his total tax liability at $2,644 for the periods.

He is facing up to 10 years in prison and fines of up to $20,000 if convicted of the charges.

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