Tax Jam: Engineer Caught by IRS Engineering a Sham Trust
John Everson, owner of an electrical engineering business, was found guilty of tax evasion after he used a sham trust to conceal three years of business income. From 2012 to 2015, Everson earned more than 1.3 million dollars from the business and asked his clients to make the payments to the trust. He used the money in the trust to pay personal expenses and regularly withdrew large sums in cash. Some of the cash was then funneled to non-profit accounts that he and several family members controlled. To further conceal his income and assets, he also put his home and personal airplane in the name of a non-profit organization.
Everson cost the IRS more than $500,000 in tax loss. Additionally, he faces up to five years in prison on each of three counts.
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