Back in July 2007, the IRS demanded that Richard M. Arnold of El Reno, Oklahoma, pay back taxes in the amount of $317,000. This wasn’t his first brush with the IRS; back in 1999 the IRS filed a $300,000 lien on his property.
Most of us, when we have tax problems, will work with the IRS, hire reputable representation, and attempt to resolve the problems. While it’s possible that Mr. Arnold did this (the news story isn’t clear on that), he did one thing that was sure to cause grief if discovered. He used an entity he created in Panama to purchase a $78,000 SUV in Oklahoma.
Let’s see how bad this is. Offshore companies, assets moved offshore, hiding assets from the IRS…well, I think you get the idea. Mr. Arnold pleaded guilty last week to the charge of concealing property upon which levy was authorized for the purpose of evading or defeating the assessment or collection of federal taxes. He’ll be sentenced later this year and could get three years at ClubFed.
If you get into tax trouble realize that taking money you’ve moved offshore and purchasing luxury items is a good way of getting in deep trouble.