Posts Tagged ‘underreporting income’

$1 Million Tax Evasion by Owner of Cinemas

Friday, April 12th, 2013

The owner of movie theaters in Michigan will spend a year in prison after attempting to evade nearly $1 million in taxes.
Elaine Dawson, 69, of Bellaire, Michigan, pleaded guilty to the tax evasion charge. She was also ordered to pay restitution of $988,366 to IRS.
According to court records, Dawson willfully evaded nearly $1 million in corporate and personal income taxes between 2004 and 2010. Dawson owned five cinemas in Michigan and
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Strip Club Owner Files False Tax Returns, Goes to Prison

Thursday, November 1st, 2012

Ahmad “Mike” Rahiminejad, 56, from Helena, Al., owner of Mike’s Crossroads strip club was sentenced to 21 months in prison for filing a false tax return and underreporting his income by almost a half a million dollars!
A Fox 6 News article titled: Mike’s Crossroads owner sentenced to prison for tax violation reported that in 2007 Rahiminejad, who owned or operated other Birmingham-area businesses including Mike’s Citgo 1 and the Gold
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IRS Zooms In On Tax Cheats In Millionaire Category Such as Colorado Man Who Did Not Report $4.7 Million

Monday, April 25th, 2011

Do you think that only celebrities get targeted for tax evasion?  Not true! The IRS will come after you – famous or not – if you are cheating on your taxes, especially if you are making millions.  I’ve blogged about how the IRS is zooming in on tax cheats in the millionaire category and the following article supports that case:
A Colorado loan preparer has pleaded guilty to tax evasion, admitting
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Delinquent Tax Filing is a Better Alternative to Filing False Tax Return

Thursday, March 24th, 2011

Failure to file tax returns can be a criminal offense.  What most people don’t know is that you have a right to file your original tax return, no matter how late it is.  Delinquent tax filing gives the consumer a chance to state what they owe to the IRS.  Another fact that most people don’t know is that if you don’t file your tax return, the IRS will often file
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Classic Case of Tax Evasion: Under Reporting Income Gets Florida Man 51 Months in Prison

Monday, May 24th, 2010

John A. Gullett, of Parkland, Fla., was sentenced to 51 months in prison, to be followed by three years of supervised release, after being convicted on four counts of filing a false tax return. Gullett was also ordered to pay restitution of $255,000 to the IRS.
According to court records, Gullett submitted false Form 1040 Individual Income Tax Returns, statements and documents for tax years 2002 to 2005. He under reported
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Tax Debt is Scary But Evading Taxes is Scarier: Man Gets Prison Sentence for Not Reporting $500K

Monday, November 16th, 2009

Some people are just straight up tax cheats.  The Wyoming man in the story below blatantly evaded his taxes doing things such as underreporting income and filing false tax returns.  Subsequently he was sentenced to prison time and left with a hefty fine – all of which he deserves.  For those who find themselves in tax debt, not because they were purposely cheating on taxes but because of other extraordinary
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Trucking Company Owner Convicted of Tax Evasion Faces Severe IRS Penalties

Wednesday, August 12th, 2009

The owner of a Texas-based trucking company has been convicted of three counts of making false statements on tax returns filed for the company for tax years 2000 to 2002.
Gladys Nell Bishop is the president of Quality Trucking Inc. in Houston. Trial evidence proved Bishop set up an accounting system at the company and maintained checking accounts at two different banks but only reported checks deposited into one of the
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Ask the Tax Resolution Expert–Business Owner Needs Tax Help for Avoiding IRS Audits on Employees Underreporting Tips

Tuesday, August 11th, 2009

Whether or not you are legally obligated to report tip as income has been somewhat of a fuzzy area (especially cash tips!). Skimping on reporting your full tip (100% of your tip retained) is considered deliberately underreporting income and may be subject to severe IRS audits and penalties.
If you made more than $20 in tips in any one month, you will have to report the full amount of the tip
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Florida Real Estate Agent Tried to Evade Paying Taxes: $1.6M in Taxes

Tuesday, May 12th, 2009

A commercial real estate agent in Florida has been charged with tax evasion. The government alleges Thomas W. Daugherty, 53, of Fort Myers, evaded paying approximately $1.6 million in taxes from 1998 to 2005.
According to the government, Daugherty maintained a cash lifestyle to hide his earnings. He  refrained from depositing his commission checks into his bank account and instead converted his commission checks into cash and multiple cashier’s checks payable
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Ask the Tax Resolution Expert – Are Penalties Severe for Underreporting Income?

Sunday, April 26th, 2009

QUESTION: Some of my income is paid to me in cash.  If I do not report all of it, will the penalty be a fine?
Answer: Whether you underreport some, most, or all of your income, the penalties are severe!  Do not think that the IRS will fine you and that is it!  The IRS will consider you a tax cheat and you will be guilty of tax evasion, even
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