Chiropractor Will Adjust to ClubFed

A Cadillac, Michigan chiropractor thought he had the perfect method of saving on taxes. He created two sets of books. One accurately reported his income and expenses; the other underreported income and overreported expenses. (I have always wondered if in some alternate universe there’s a tax evader who overreports his income and underreports his expenses. But I digress….) The chiropractor, Paul Kelly, provided his accountant with the books that showed the lower (incorrect) profits. He even used a second bank account in another name to attempt to match his purported income with his books.

For seven years this scheme ran (from 1999 to 2006). It’s unclear how the IRS discovered the tax evasion, but discover it they did. Back in August Kelly pleaded guilty to one count of tax evasion; he admitted that while he paid $23,601 in taxes his true liability was far higher. Today, he was sentenced to two years at ClubFed plus two years of probation. He must also make restitution of $279,145.

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