Advice from a Tax Professional: Tax Cheats Beware!

Tax cheats, beware! The IRS is watching you – I can’t tell you how, when or where, but the IRS can see you! I’ve blogged about people evading taxes before – in fact the article below was an example of how the IRS is ramping up prosecutions of tax cheats – and I will blog about it again to let you know that we, a group of tax professionals and tax attorneys at Tax Resolution Services, take the IRS seriously and so should you!

Thomas Ellis, 63, and Brenda Ellis, 59, of Richmond, Va., have pleaded guilty to conspiring to defraud the IRS of more than $133,000 in tax revenue from 2003 through 2007.

The Ellises were the owners of Buzz Thru Car Washes, an automated car wash service in which customers deposited payment, generally in the form of paper currency or coins, into a machine.

Thomas Ellis brought the daily car wash cash receipts to the home office where Brenda Ellis would then account for the cash in two sets of records and ledgers. On one set, she recorded the true amount of cash received by the two car washes. On another set, however, she recorded a lesser amount of cash received.

When the business owners went to the bank, they deposited only the lesser amount of cash recorded in the second set of records. They kept the rest of the cash in a safe at the house or used the funds to maintain their lifestyle.

Between 2003 and 2007, the Ellises understated $386,397 in income from their car wash businesses, resulting in the nonpayment of $133,163 in income tax.

They face up to five years in prison and a fine of up to $250,000.

As you can see, being a tax cheat does not guarantee you riches! I can say that in most tax evasion cases the only guarantee is three prison meals a day and a hefty fine on top of that! If you want to resolve your tax problems, do it legally with a team of tax professionals. Tax Resolution Services has tax attorneys and Certified Tax Resolution Specialists that are here to help you resolve tax issues such as delinquent tax returns (late taxes), settling back taxes, applying for an Offer in Compromise, solving your tax audit, and other tax services. We offer a free tax consultation by filling out this online form or calling us at 1-866-IRS-PROBLEMS (1-866-477-7762).