IRS Problems for Tax Evader Convicted of Underreporting Income

If you deliberately evade taxes by underreporting your income, you cannot always blame your accountant for the discrepancy. Underreporting income to skimp paying taxes is criminal and the penalties can be financially debilitating depending on the amount you owe.

Recently, an individual was convicted for tax evasion because he did not provide sufficient proof that he was unaware of the discrepancy between his reported income and his actual income. CCH ( reports:

Conviction for Tax Evasion and Filing False Return Proper; Deliberate Ignorance Instruction Properly Given

A federal district court properly convicted an individual of tax evasion and filing a false tax return. The court’s deliberate ignorance instruction to the jury was properly given. The individual kept a running log of the financial status of each case; therefore, he was well aware of his law firm’s finances. Moreover, his personal expenditures and submission of a financial statement to a bank indicated his knowledge that both his corporate and individual gross incomes were larger than those reported.

Considering the significant disparity between the income reported by the individual and the actual income earned through his law practice, the jury was entitled to disbelieve his excuse that he relied on his hired assistant and accountant to file accurate returns and signed the returns without reading them. A rational jury could reasonably conclude that the individual knew how much money his practice made and that he misreported that figure willfully and with specific intent to violate the law. Further, his failure to disclose in his offer-in-compromise (OIC) the possibility of receiving a substantial contingency fee if his client prevailed in a matter, his continued failure to specify that matter in an addendum submitted after his client prevailed in the matter and his denial of any involvement in his client’s matter indicated that he committed tax evasion.

Make sure that you’re following the rules when filing for taxes. The money you save from tax evasion is not worth the IRS tax penalties that will be imposed on you when you get caught. Don’t risk getting into heavy tax trouble. You can always contact a professional tax lawyer if you are unsure of your tax return filings.

Contact our team of experts for a free consultation. Call us at 866-IRS-PROBLEMS (1-866-477-7762) or visit our website at

More Tax Help, IRS News and Tax Relief Tips:

  1. Can’t Afford to Pay Your Taxes? IRS Offers Payment Plans and Tax Relief Options
  2. Tax Help For Taxpayers Short on Cash: Filing a Tax Return Late is Better than Filing a False Tax Return
  3. Offer in Compromise: How to Get the Tax Help You Need Through an IRS Offer in Compromise
  4. 6 Tips for Hiring a Good Income Tax Attorney or Certified Tax Resolution Specialist
  5. Michael Rozbruch Interviewed in Opportunist Magazine

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One Response to “IRS Problems for Tax Evader Convicted of Underreporting Income”

  1. Trucking Company Owner Convicted of Tax Evasion | Tax Relief Tips from the Experts at Tax Resolution University Says:

    [...] evasion.

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