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Massachusetts man charged with tax evasion

On Behalf of | May 15, 2013 | Tax Evasion

A Milford man has been charged with using evasive tactics to avoid paying taxes on his income. The tax evasion charges spring from allegations that he used check-cashing services to cash the majority of his check received from clients for his masonry business. He is also accused of paying his employees in cash and failing to withhold taxes on their income.

According to the charges, the man utilized check cashing services and asked clients to pay him in amounts less than $10,000 so that the IRS would not be alerted by these companies. He is accused of earning more than $1,000,000 in 2006 but reporting only $45,000. In 2007, he earned more than $500,000 but reported only $47,000. There are several years in which he did not file returns at all.

The mason now faces jail sentences of up to three years for each count of filing a false return and a fine of at least $250,000 for each charge if convicted. Income tax evasion is considered fraud and is treated as a criminal activity against the government. It is also possible he could face charges for failing to withhold taxes on his employees’ pay.

A tax attorney may be able to work with a person accused of income tax evasion. When an individual faces these charges, the penalties may be severe and can include prison time as well as heavy fines. A person accused of income tax evasion may wish to negotiate a plea agreement to reduce prison time and fines or may wish to fight the charges. In both cases, a tax attorney may be useful in offering advice and representation in any legal action involving income tax.

Source: The Milford Daily News, “Blackstone man indicted on tax evasion charges“, May 10, 2013


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