How about an actual case about corporate tax evasion?
The following are examples of the consequences of committing corporate and business tax evasion from the IRS website.
Small scale. Here is a real-life case about how an employer was sentenced for owing the IRS under $3,000 in employment taxes. The case is taken from the IRS website. This individual was sentenced for failing to pay taxes.
On July 17, 2006 in Kansas City, MO, Dentist Artis Lee Clark was sentenced to 12 months and one day in federal prison for failing to pay employee withholding taxes. Clark pleaded guilty in November 2005 and admitted that he withheld taxes from his employee's wages and failed to send the $2,647 in tax money to the IRS. Larger scale. This is a real-life case where an employer was sentenced for failing to file payroll tax returns and committing employment tax fraud.
On July 13, 2006, in St. Paul, MN, Scott Kimrey Goldsmith, the former owner and president of Goldsmith & Associates, a Minneapolis law firm, was sentenced to 33 months in prison to be followed by 3 years of supervised release. Goldsmith pleaded no contest in 2005 to four counts of failing to file federal individual income tax returns and twelve counts of failing to pay employee withholding taxes that he had collected. Goldsmith did not dispute the federal government's claim that from 1999 through 2002, he paid himself approximately $1,350,000 in salary but never filed tax returns. Moreover, he did not object to the government's allegation that between April 1999 and March 2002, he deducted money from employee paychecks for federal income taxes, social security, and Medicare but failed to turn those funds over to the IRS. Court documents indicate that Goldsmith's actions resulted in tax losses to the IRS and the Minnesota Department of Revenue in excess of $500,000.
Tax Relief Frequently Asked Questions
What is one IRS Penalty?
Is there a penalty for not reporting my social security number?
What is the IRS penalty for not filing my tax return?
What is a frivolous return?
Is there a penalty for paying taxes late?
What is an example of a tax evasion case?
What is tax fraud?
What is tax evasion?
What is innocent spouse relief?
Can I see an example of innocent spouse relief?
When does innocent spouse relief not apply?
What form do I need to request innocent spouse relief?
How can I appeal an innocent spouse relief?
What are some innocent spouse relief rules?
Am I eligible for innocent spouse relief?
Where do I mail my IRS Form 8857?
What is corporate tax evasion?
What are some payroll taxes?
How about an actual case about corporate tax evasion?
What are some fringe benefits?
What is tax relief from a tax loss?
How can state taxes paid provide tax relief?
What is some small business tax relief?
What happens with unpaid payroll taxes?
What is an automatic IRS installment plan?
What are some documents needed for payment plans?
What is the drawback to an IRS installment plan?
What if I fall behind in my tax payments?
How can I make payments on my IRS payment plan?
What form do I need for requesting an IRS installment plan?
How do I request an IRS Payment plan?
What is an IRS tax installment agreement?
What are the guidelines for applying for an OIC?
Be weary of what?
Are there examples of OIC case studies?
How do I calculate my OIC offer?
When can I apply for an OIC?
What is an offer in compromise?
What are the procedures for an OIC?
What is an uncollectible account?
What are back property taxes?
Where can I get federal tax lien information?
What is a release of federal tax lien?
What is a notice of federal tax lien?
What property can be subject to a tax lien?
What is the tax lien process?
How do I perform a tax lien search?
What is a high risk taxpayer for tax liens?
What is a tax lien?
What assets can be levied?
How do I appeal an IRS levy?
What is a bank levy?
What starts the levy process?
What is a Notice of Levy?
How can I release a tax levy?
What is a state tax levy?
What is the difference between a tax lien and levy?
What is a wage levy?
What are some high risk trigger areas?
What are some IRS audit red flags?
Can I represent myself during an audit?
How long does the IRS have to audit me?
How do I prepare for my IRS audit?
How do I protect myself from an audit?
What is the IRS Taxpayer Bill of Rights?
What are some types of IRS audits?
How do I appeal a wage garnishment?
Can I see a wage garnishment case?
What is a wage garnishment?
What is a IRS warning?
What if I am self-employed?
How do I stop wage garnishment?
How do I release a wage garnishment?
Why do I have a wage garnishment?
What is my responsibility with wage garnishments?
How can an amended return give me tax debt help?
What is bankruptcy?
What is the debt calculator?
What is state tax debt?
What is a tax debt help mistake?
Who is a tax debt pro?
What is the Taxpayer Advocacy Services?
What is an uncollectible category?
What is a back tax form?
How do I file back taxes?
How do I pay back taxes?
What is the IRS statute of limitations?
What if I didn't receive a W-2?
What are the penalties for not filing my return?
What is a special situation regarding back taxes?
What is the IRS statute of limitations for back taxes?
What about the IRS & Substitute Tax Forms?
What is a penalty abatement?
What is an example of a penalty abatement?
What is a reasonable cause for penalty abatement?
How do I request a penalty abatement?
How do I request an interest abatement?
What is a penalty abatement request letter?
What about penalty abatements?
What if I rely on IRS incorrect advice?