Tennessee Man Tries to Outwit the IRS and Fails

Brian Leo Snow, a resident of Rogersville, TN, was indicted by a federal grand jury, charging him with obstruction of internal revenue laws, filing fraudulent multi-million dollar liens against government employees and filing false claims for tax refunds.

According to court documents, it’s alleged that Snow filed false tax returns in a period of at least 9 years, filed false UCC Financing Statements against government employees seeking to collect his back taxes, and a false tax lien release with the County Register of Deeds.

The indictment charges Snow with failing to file tax returns for almost 20 years and owes the IRS over $150,000 in back taxes.  He filed the false retaliatory liens worth millions of dollars against an IRS Revenue Officer, an Assistant United States Attorney and a federal judge. Snow also filed false claims with the IRS claiming over $144 million in refunds.

Snow could face a prison sentence of at least 20 years plus monetary penalties.

Resort Operator Won’t be Working on His Tan in Prison

William Whittington of Scottsdale, AZ, and a former resident of Pagosa Springs, CO, pled guilty in the U.S. District Court of Colorado on charges of filing a false tax return in 2010.

Whittington, along with family members, owned the Springs Resort & Spa in Pagosa Springs.  From 2010 to 2012, Whittington directed that income derived from the resort by used to pay his personal expenses, which resulted in him underreporting his income by more than $900,000 and not paying more than $360,000 in income taxes.

It was also shown in court that from 2003 to 2010, Whittington used two offshore accounts in Liechtenstein to generate more than $9.7 in investment income in which he did not declare on his tax returns, resulting in a loss to the IRS of at least $1.5 million.

Sentencing is scheduled for October 9, 2018 where he will face prison time, supervised release, restitution and monetary penalties.

Maybe Things Would Have Gone Better with Coke For this Soda Executive

Michael Lynch, a resident of Newport, RI, was sentenced to 33 months in federal prison on charges of tax evasion and fraud.

Lynch was a national sales executive for Dr. Pepper/Seven Up Inc., which is a subsidiary of Dr. Pepper Snapple Group.  Lynch had previously admitted in court that Seacoast Unlimited Marketing and Promotions LLC, a company he incorporated in his wife’s name, had submitted more than 200 fraudulent invoices to Dr. Pepper for promotional services such as signs, banners and delivery of sample products.  None of those services paid by Dr. Pepper were provided.

Lynch also admitted that he failed to declare income derived from Seacoast on his tax returns he filed jointly with his wife. The loss to the IRS totaled $386,320.

In addition to his prison sentence, Lynch was given 2 years supervised release after prison, and ordered to pay full restitution to Dr. Pepper and back taxes owed to the IRS.

Some of the Worst Tax Cheats in History – Dennis Kozlowski

Dennis Kozlowski, Disgraced CEO
Your typical CEO of an American megacorporation isn’t afraid to exhibit the trappings of his or her success. Kozlowski, the former chairman of Tyco International, was no exception, as he paid $14.7 million for 12 paintings — including a Monet, Renoir and Bouguereau — to proudly display in his Manhattan apartment. The obvious problem: he didn’t pay the accompanying taxes, resulting in his 2002 indictment and eventual agreement to pay $21.2 million to settle charges, $3.2 million of which was in sales tax and interest on the paintings. In the process, Kozlowski and Mark Schwartz, the company’s former financial chief, were convicted of stealing more than $600 million from Tyco. Currently, Kozlowski is serving an 8.33-to 25-year prison sentence.

Some of the Worst Tax Cheats in History – Reuben Sturman

Reuben Sturman, Pornographer and Businessman
At one time the world’s biggest distributor of pornography, the late Sturman endured three decades of legal problems resulting from his shady business dealings. Not only was he subject to numerous raids during an era in which pornography wasn’t quite as mainstream as it is today, but he was also involved in numerous criminal activities, forging ties with the Gambino crime family. Not surprisingly, he failed to report $2.7 million in income from 1978 to 1982 — in 1979, he reported just $1,237 in taxable income — and accordingly was convicted of tax evasion and sentenced to 10 years in prison in 1989.

Some of the Worst Tax Cheats in History – Edward and Elaine Brown

Edward and Elaine Brown, Dental and Pest Business Owners

Ed and Elaine are the Bonnie and Clyde to tax-haters everywhere. Their months-long 2007 standoff in their 110-acre home in New Hampshire, where residents “Live Free or Die,” made national headlines. The incident occurred after the couple was sentenced to 5 years and 3 months in prison for failure to pay federal income tax on $2 million of their income. Fortunately, nobody was injured, even though numerous weapons, ammunition, booby traps and explosive devices were found in their home. Now, Ed and Elaine are serving 37-and 35-year sentences respectively.

Some of the Worst Tax Cheats in History – Walter Anderson

Walter Anderson, Telecommunications Tycoon
The 1990s were a prosperous time for numerous American entrepreneurs, but with many, you wouldn’t even know it. Anderson found creative ways to effectively hide his massive income — $365 million to be exact — using offshore tax havens, drop boxes in the Netherlands and shell companies. In 1998, for example, he paid just $495 in taxes after claiming an income of $67,939, when in reality, he earned more than $126 million. He was so well off that he kept a multimillion-dollar art collection and once considered leasing the Mir space station. Anderson, now serving a nine-year prison sentence, claims he’s innocent despite pleading guilty in 2006.

Your IRS Questions Answered Here…

Question: I received a Notice of Federal Tax Lien via certified mail for unpaid back taxes and I’m scared and don’t know what to do.  Can you help?

Answer: Yes. A Notice of Federal Tax Lien (NFTL) is public record and is generally filed with the County Recorder where you reside.  A federal tax lien will also negatively impact your credit report scores.  It is notice to all your other creditors that the IRS has a secured interest in all your real and personal property you have now and acquired in the future.

A federal tax lien will make it very difficult, if not impossible, for you to purchase a home, vehicle and other property on credit.  It may also prevent you from accessing the equity in real property you may have built up over the years.

However, the IRS has several different solutions that can resolve your NFTL if you qualify.   You can resolve a federal tax lien by paying it in full or if that is not an option you can find out if you qualify for a “Release of Lien”, a “Lien Subordination”, a Lien Discharge” or “Lien Withdrawal”.  It is important to keep in mind that IRS problems didn’t just happen overnight and will take some time to resolve.  The good news is that generally you won’t have to meet or even speak with the IRS while we’re retained.   It’s important to consult with a tax resolution professional to see which Lien relief solutions you may be eligible for before the IRS starts enforcing aggressive collection action against you. We can help protect what you have and preserve your rights!!

July Tax Joke

The government is really asking a lot of us this month — first we’re supposed to count how many people live in our home, then we’re supposed to count how much money we owe them.  I actually got confused and accidentally sent a check to the census and a member of my household to the IRS.  Sorry, grandma!

-Jimmy Kimmel

Karaoke Bar Owner will be Singing a Different Tune in Prison

Kae Wook Lee of Queens, NY pled guilty in May, 2018 to charges of failing to collect and pay employment taxes to the IRS.

Lee was the sole owner and CEO of Mona Lisa 7 Corporation which operated a karaoke bar in Queens. According to court documents, for the tax years 2011-2013, Lee deposited part of the bar’s earnings into shell accounts he created.  From those accounts, Lee would withdraw money to pay his employee’s wages in cash without collecting employment taxes or paying those taxes to the IRS.  Lee would conceal the cash payments from his accountant and in turn filed false tax returns that underreported his employee’s wages. The IRS estimates their loss as approximately $612,500.

Lee is scheduled to be sentenced in September, 2018 where he could faces up to five years in prison, a period of supervised release, restitution and monetary penalties.