I didn’t know that shoe inserts were a good business, but they are. Randall Pennington, of Houston (and formerly of Branson West, Missouri) was the proprietor of an orthotics business in Missouri. One look at the tax returns of his business and you’d believe that business was poor.
Of course, given that Mr. Pennington only told his tax preparer about two of his seven bank accounts, that might have had something to do with it. Did I mention that he sent some of the money that his business made into another individual’s account? Perhaps I should add in the fact that he adjusted the social security number on some gambling winnings to lower his tax.
However, all was for naught in the end. The IRS got wind of the scheme, and Mr. Pennington was investigated. He pleaded guilty yesterday to one count of filing a false tax return. Given that he paid $1000 in tax in 2002 when he should have paid $318,000 for the five years ending in 2004, I suspect Mr. Pennington will get near the maximum sentence of three years at ClubFed.
As always, it’s a whole lot easier to just pay the tax in the first place but that just never appeals to the bozo tax scofflaws out there.