A man from Dartmouth, Massachusetts, was recently sentenced after his tax evasion conviction. He received a sentence for two years and a $50,000 fine and over $300,000 in restitution, payable to the Internal Revenue Service.
According to court documents, the man and his girlfriend defrauded the country by avoiding tax assessments and the collection of income taxes for three years. He did not file any tax returns or pay the taxes that he owed for these years. He had acquired a number of real estate units and received rental income for most of these properties, some of which were commercial properties. He also received capital gains on some investments. For the three years that he did not pay income taxes, he made between $264,000 and $485,000.
The government proved that the man schemed to defraud the federal government. He ceased making financial transactions that could be tracked by not using his bank account, creating shell entities that concealed his investments and used his girlfriend to conduct his day-to-day finances. He also completed most transactions on a cash basis. He paid his mortgage payments with cash and had his tenants pay for their rent in cash. He was convicted of multiple counts of tax evasion.
When a person is under investigation for tax evasion, he often retains the services of an experienced tax attorney. This individual can look if there were any mistakes of fact or law on the part of the person who may potentially face charges for tax evasion. Experienced tax attorneys can help individuals and businesses secure all applicable deductions and exemptions without exposing them to the liability of tax evasion charges.
Source: Wicked Local Wareham, “Dartmouth man sentenced for conspiracy, tax evasion,” Sept. 27, 2012