Tax Cheats Beware: The IRS is More Vigilant Than Ever

With the IRS more vigilant and efficient, it’s never been more dangerous to cheat on your taxes.


“I won’t get caught.”

I’ve heard a lot of people say that.

People who are cheating on their taxes.

People who are working with so-called tax advisors offering too-good-to-be-legal advice.

People hiding money in trusts or offshore accounts.

People not reporting a portion of their business income.

You know these people. In fact, these people may well include you. And if you are one of these people, then keep reading, please.

Because you will get caught.

In fact, just about everyone does.

One person who likely didn’t think he’d get caught was a big-time New York politician: Pedro Espada Jr. He was the New York State Senate majority leader and vice president pro tempore for urban policy of the Senate.

Espada, who was president and CEO of Soundview Healthcare Center, concealed money he received from Soundview through a janitorial company he owned.

In other words, he cheated on his taxes.

And he’s going to pay.

Espada, who pleaded guilty to federal tax fraud charges, faces up to 43 years in prison as well as forfeiture, fines and restitution of more than $2 million.

John W. Hufgard, of Bath, Ohio, didn’t think he’d get caught either.

Hufgard was a scrap metal dealer who allegedly evaded nearly $400,000 in taxes from 2007 through 2009 by accepting cash payments for his scrap metal and not reporting the money as income to the IRS.

In fact, Hufgard was so committed to making sure that his business transactions were cash-only that he’d travel great distances with metal to dealers he knew would pay him in greenbacks, rather than working with dealers closer to home who might want to pay him with a check.

Then there’s Dwight C. Jackson, a 53-year-old retired firefighter from Henderson, Nev.

Jackson had the misfortune of meeting James Mattatall in Las Vegas. Mattatall is a Southern California tax scam promoter and member of the fringe sovereign citizen movement, whose members do not believe the U.S. government, is legitimate.

From 2004 through 2008, Jackson submitted false paperwork and returns that fraudulently underreported his earnings.

For the tax year 2009, Jackson told the IRS he earned nothing that year when in fact he’d earned nearly $250,000.

Following Mattatall’s bogus tax advice will cost the firefighter. After being convicted on tax charges, he faces 30 years in prison.

I’m trying to make a point with these cases.

The IRS is on the hunt, and more efficient than ever. If you’re cheating on your taxes, it’s time to come clean.


This article was written by Michael Rozbruch who is a Certified Tax Resolution Specialist, a member of the American Society of IRS Problem Solvers and a Maryland CPA.  You can contact him at 866 477-7762 to obtain a free subscription to his newsletter titled The IRS Times & Inquirer.

More Tax Help, IRS News and Tax Relief Tips:

  1. Tax Scams are Not the Way to Resolve Tax Problems or Back Taxes as Witnessed by an Attorney Who Was Involved in a Tax Evasion Scam and Anti-IRS Promotion and Now Faces His Day in Court
  2. Tax Cheats Beware: IRS Enforcing Tax Collection, Tax Evaders Likely to Face Years in Prison and Hefty Fines
  3. Firefighter Facing Federal Tax Charges and 30 Years in Prison
  4. Federal Tax Evasion and Money Laundering: Massachusetts Man Guilty
  5. Tax Fraud Charges for Georgia State Representative

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