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Man pleads guilty to tax evasion after IRS investigation

| Feb 13, 2019 | Tax Evasion

The IRS wants the money it believes people here in Massachusetts and elsewhere owe. The agency will conduct investigations when its agents suspect that an individual or business failed to pay any amounts owed. Depending on the results of the investigation, agents will make accusations of tax evasion and other crimes against taxpayers.

For example, an independent contractor worked installing ATM machines in casinos in another state between 2000 and 2012. He received commissions based on ATM transactions at the facilities where he installed the machines. In 2012, the man filed his tax return for the year 2005. In that return, he claimed an income of $394,317.

The amount of tax owed based on the income reported in the return, his tax obligation for 2005 amounted to around $110,372. The IRS claims that the independent contractor never paid any of that amount. For this reason, the agency sent correspondence to the man’s employer, indicating that any monies he made were to be sent to the IRS to satisfy his tax obligation. However, agents alleged that the man sent his own correspondence to his employer indicating that money should be sent to a “fictitious” company.

In Feb. 2019, the Oklahoma man pleaded guilty to tax evasion, and faces fines of up to $250,000, up to five years in prison and supervised visitation for three years. If a Massachusetts resident discovers that the IRS is conducting an investigation into his or her tax filings, it would be a good idea to consult with a tax attorney as soon as possible. Not only could he or she face the same types of penalties, but a conviction could also affect other aspects of life well into the future.

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