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According to a Department of Justice press release, a Colorado woman was recently sentenced to serve 33 months in federal prison after being convicted of fraud and failing to report income to the IRS. This story shows how important reporting the correct amount of income on your annual tax returns is to the IRS. If you have failed to file a tax return for one or more years or have failed to properly include income on your tax return, it is in your best interest to contact an experienced tax defense attorney today to determine how you can best come into compliance.
Court records indicate that Kristin Martin, 39, of Littleton, Colorado worked as an executive assistant for her employer. Between 2013 and 2016, Martin was accused of using her company’s accounts to purchase hundreds of thousands of dollars of office supplies. Martin then sold the office supplies that she had purchased without authorization and sold them on eBay, pocketing the proceeds.
In addition to office supplies, Martin purchased iPads, Kindles, and other electronics to sell online. Investigators estimate that she made more than $864,000 of fraudulent purchases and earned an illegal profit of more than $571,000 from the scam. Martin failed to report any of the income that she earned as a part of the scam on her annual income tax returns for the years at issue.
In addition to serving nearly three years in prison, Martin will be required to serve three years of supervised release upon her release from physical incarceration. Martin was also ordered to pay her company restitution in the amount of $872,337 and restitution to the IRS in the amount of $161,864, representing the amount of tax that went unpaid.
Although the defendant in the case above engaged in illegal activity, the story still illustrates the importance of reporting all your gross income on your yearly tax return. Regardless of where your income comes from, you are required to report it. Failing to do so intentionally can, as evidenced by Martin’s lengthy prison sentence, result in severe criminal consequences.
If you have failed to file a tax return for one or more years, or have taken a position on a tax return that cannot be supported upon audit, it is in your best interest to contact an experienced tax attorney as soon as possible to determine the best method for you to come into compliance. Although there are many uncertainties as to when the IRS will discover your tax noncompliance, there is one certainty: getting right with the government will yield better results than waiting for the IRS to come knocking.
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Regardless of your business or estate needs, the professionals at the Tax Law Offices of David W. Klasing are here for you. We are open for business and our team will help ensure that your business is too. Contact the Law Offices of David W. Klasing today to discuss your business with one of our professionals.
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