An Essex County, N.J., man who sells watches and other merchandise through Internet sites such as eBay pleaded guilty to filing a fraudulent tax return.

Jaime Virtucio, 59, of Bloomfield, pleaded guilty to subscribing to a false personal tax return. At his plea hearing, Virtucio admitted that he received payment from Internet sources, including PayPal and CPS Merchant Services, directly into bank accounts he controlled in return for merchandise he sold over the Internet.

Virtucio admitted that in April 2004, he signed and filed a 2003 tax return that stated his taxable income was approximately $18,307. Virtucio admitted that he actually had received and failed to report additional taxable income of about $106,559 that he gained through the sale of watches and other merchandise.

Virtucio also admitted that he filed false personal income tax returns with the IRS for 2004 and 2005, which understated the amount of taxable income he received for those calendar years. Virtucio admitted that for tax years 2004 and 2005, he failed to report a total of about $122,498 in additional taxable income on those tax returns.

He faces up to three years in prison and a fine of up to $100,000.

I’ve blogged about underreporting income before and every story seems to have the same ending: prison time and a fine.  If you are a business operator and are feeling overwhelmed by taxes, seek professional tax help now!  Tax Resolution Services is a nationwide professional tax solution company with a team of tax attorneys and IRS specialists who can help you find tax relief.  Free tax consultation - sign up on our website or call us at 866-IRS-PROBLEMS (866-477-7762).

More Tax Help, IRS News and Tax Relief Tips:

1. Tax Debt is Scary But Evading Taxes is Scarier: Man Gets Prison Sentence for Not Reporting $500K
2. Avoiding Taxes Like this Man from Akron Can Get You Prison Time and an IRS Tax Lien Against You
3. Trucking Company Owner Convicted of Tax Evasion Faces Severe IRS Penalties
4. Furniture Retailer Guilty of Tax Evasion and What to Do if You are in an IRS Audit
5. Failure to File Income Tax is a Crime: Get Professional Tax Help Get With Your Delinquent Tax Filing Before It’s Too Late

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This entry was posted on Monday, August 17th, 2009 at 9:00 am and is filed under IRS Tax Cases, IRS Times and Inquirer, Unfiled Returns - Delinquent Tax Returns. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.