Avoiding Taxes Like this Man from Akron Can Get You Prison Time and an IRS Tax Lien Against You

If you owe the IRS taxes, they can file a federal IRS tax lien against you!  With a tax lien filed against you or your business, your credit is affected.  It shows up on your credit report and will make it difficult, or impossible, to obtain financing for an automobile or a home.  How does an IRS tax lien get filed against you?  A great example is this man in Akron, Ohio, who found all sorts of ways to evade taxes.

Daniel L. French, of Akron, Ohio, was sentenced to eight months in prison, to be followed by three years of supervised release, for attempting to evade personal income taxes for the year 2003.

French pleaded guilty to the charge in a written plea in which he also acknowledged he attempted to evade his 2002 taxes and filed false 2002 and 2003 S Corporation returns for a corporation he previously owned and operated under the name D.L. French Co. Inc.

According to the plea agreement, French filed false S Corporation returns (Form 1120S) for the years 2002 and 2003, whose deductions for purported corporate payments for “shop supplies and parts” and “subcontract labor” were in fact disbursements for his personal benefit.

Among these disbursements were checks deposited into a nominee bank account French controlled. As a result of the overstatement of costs, the corporate returns also understated the corporation’s income, which was reportable on French’s personal returns as distributive income. French attempted to evade his personal income taxes for 2002 and 2003 by filing false tax returns on which he understated his income and tax liabilities by reporting his falsely understated business income.

More Tax Help, IRS News and Tax Relief Tips:

  1. Trucking Company Owner Convicted of Tax Evasion Faces Severe IRS Penalties
  2. Tax Resolution Services Offers Only Good Tax Help: Ohio Businessman Hit with Tax Charges after Bad Advice
  3. Tax Debt is Scary But Evading Taxes is Scarier: Man Gets Prison Sentence for Not Reporting $500K
  4. Classic Case of Tax Evasion: Under Reporting Income Gets Florida Man 51 Months in Prison
  5. Businessman Doesn’t Comply with IRS Levy and Evades Taxes, Faces Up to Five Years in Prison

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2 Responses to “Avoiding Taxes Like this Man from Akron Can Get You Prison Time and an IRS Tax Lien Against You”

  1. outsourcing tax return consultation Says:

    Nice blog and nice case… its great to have such blogs and study on it… Really thankful to you…

  2. Tax Liens Says:

    Thanks for posting this tax related information. I have added you to my Google reader and look forward to reading your other posts. Goes to show what happens when you don’t pay your taxes

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