Tam Phan, owner of Happy Nails & Spa in Middleton, Wisconsin, pleaded guilty to tax evasion on July 28. The announcement was made by Chadwick M. Elgersma, Acting United States Attorney for the Western District of Wisconsin.
Phan has operated Happy Nails & Spa as a sole proprietor since 2010. According to investigators, a significant portion of the salon’s customers paid with cash between 2021 and 2023. However, only credit card sales were reported on her tax returns during that period. During her plea hearing, Phan admitted to deliberately not reporting the cash sales from her business on her 2022 federal tax return.
U.S. District Judge William M. Conley has set sentencing for October 28, 2025. Phan could face up to five years in prison.
The case resulted from an investigation by IRS Criminal Investigations and is being prosecuted by Assistant U.S. Attorney Aaron Wegner.
