Florida Doctor Evades Taxes, Fails to Evade IRS

A doctor in the Orlando, Fla., area pleaded guilty to one count of failure to file an income tax return.

According to the plea agreement, Nelson V. Vazquez, 48, of Deltona, Fla., intentionally did not file income tax returns from 2002 to 2004. The total amount of unpaid taxes for those three years was $54,140.

Vazquez, a medical doctor licensed to practice in Florida, worked as a temporary physician for other physicians and for medical placement companies from 1991 to 2005. He requested that his employers issue his compensation checks to an employee-leasing company. The employee leasing company then received Vazquez’s compensation checks, deducted its fees, and paid Vazquez as a “leased worker.” The employee leasing company, however, did not file Form 1099s or Form W-2s reporting Vazquez’s income. This allowed Vazquez to hide his income from the IRS. Vazquez last filed income taxes for the 1995 tax year.

During the IRS audit process, Vazquez sent letters to an IRS Revenue Agent disputing the agent’s examination authority and argued against the constitutionality of the federal income tax system.

The doctor faces up to one year in prison and a fine of $108,280.

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