It’s only Monday. And I already have several tales of woe from the tax evasion front.
First, there’s one less Bozo preparer out in the world. Tommy Jordan is the former owner of Tax Tyme in Montgomery, Alabama. Mr. Jordan definitely helped his clients get refunds—to the tune of $3 million—but his methods weren’t of the legal variety. The government wasn’t pleased, and Mr. Jordan tonight stands tried and convicted of 26 counts of aiding and assisting in the preparation of false tax returns. He’ll probably be spending quite a few years at ClubFed.
Heading next to Portland, Oregon we find that Jeffrey Carrithers pleaded guilty to one count of income tax evasion. Mr. Carrithers felt that one social security number wasn’t enough; he used two. That’s a problem, especially when you do that to hide income. Add in using bank accounts in others’ names, not reporting income on a Form 1099, lying to IRS agents, and, more importantly, doing this repeatedly and you’re bound to get in trouble. Mr. Carrithers cost the government $93,714.47 in lost taxes. He’ll be sentenced on March 31st; based on federal sentencing guidelines Mr. Carrithers is likely looking at spending a year at ClubFed.
Stephen Talmage of Anderson, South Carolina didn’t believe in the income tax. Well, most Americans don’t like it. Mr. Talmage took it a step further. In 1992 he stopped filing and paying income tax. When the IRS told Mr. Talmage that he had to file and pay he gave them typical tax protester frivolous arguments. When the IRS then was about to levy his wages he quit his job. In the end, though, Mr. Talmage was arrested and he pleaded guilty last year to income tax evasion. Today he was sentenced to two years at ClubFed. And he also has to pay his back taxes (now $250,000) plus penalties and interest.
Finally, Frank Frazier, Sr. is CEO of Nashville Jet Charters. His company properly collected $141,739 in federal excise taxes. He just didn’t remit those taxes to the IRS. That’s a problem, and Mr. Frazier pleaded guilty today to failing to turn over those funds he collected. It appears that including penalties and interest the total due is at least $180,000 and may be as high as $430,000. Mr. Frazier received 60 days at ClubFed and must make restitution.
As usual, it’s a whole lot easier to just pay your taxes in the first place then it is to evade them. Somehow, though, that never enters the mind of the tax evader.