Florida Salesman Sentenced in Levy-Evasion Case

According to a Department of Justice press release, a Florida businessman was sentenced last week to serve a year and a day in a federal prison for tax evasion. Court documents indicate that Thomas Daly, a 53-year-old hurricane-resistant window salesman, evaded paying income taxes from tax years 2002 through 2015. During those years (with the exception of 2007), Daly failed to file a tax return.

 

The IRS discovered that Daly was not paying his taxes and in 2009, after filing a federal tax lien, notified him that they intended to levy his wages.  To avoid having his wages levied, Daly created his own business: South Florida Home Marketing Inc. (SFHM), set up a bank account in SFHM’s name, and caused his employment status to be changed from an employee to an independent contractor. This change in employment status caused Daly’s employer to pay SFHM directly and avoid IRS levy on his wages. Between 2009 and 2017, Daly used SFHM funds for personal uses such as international travel, a boat, expensive jewelry, plastic surgery, and entertainment. Daly used the memo line on SFHM checks to represent that certain personal expenses were actually business expenses.

 

Daly’s failure to file and pay his federal income taxes resulted in a tax loss of more than $350,000 to the IRS collection division.  In addition to Daly’s 12 month and one day sentence, Daly will serve two years of supervised release and was ordered to pay nearly $460,000 in restitution to the IRS.

 

A federal tax lien represents the government’s claim to a taxpayer’s property. A lien is filed at the taxpayer’s local courthouse and put’s the world (and other creditors) on notice that the IRS has a (often first priority) claim to all of the taxpayer’s assets resulting from unpaid taxes. It is important to understand that a tax lien is not the same as a tax levy. Whereas a tax lien is a claim to property, a levy is the actual taking of a taxpayer’s property to satisfy a tax debt. A taxpayer can easily determine whether a tax lien has been filed against them, as federal tax liens will appear on the taxpayer’s credit report and will have a negative effect on their credit rating.

 

If you have a federal tax lien, it is in your best interest to contact an experienced tax collections attorney to discuss your options as soon as possible. There are programs and initiatives established by the IRS to allow taxpayers to get right with the government and may even offer an avenue for the release or withdraw of your federal tax lien. Further, there are numerous options to help you avoid having property levied by the IRS.  Learn from Mr. Daly’s mistakes, that if you ignore a tax lien, and try to criminally avoid a tax levy by hiding income or assets, you will likely have to endure even greater penalties (such as federal prison) in addition to paying what you owe.

 

Contact a Tax Collections Attorney Today

 

The tax and accounting professionals at the Tax Law Offices of David W. Klasing have extensive experience in representing taxpayers from all walks of life in a myriad of different types of tax disputers. Whether you are facing an audit, are being threatened with a lien or levy, or are involved in a criminal tax evasion of payment investigation, our zealous advocates are prepared to work with you to develop a strategy that is right for you. Stop losing sleep over your fear of investigation or prosecution. Contact the Tax Law Offices of David W. Klasing today at 800-681-1295 or online for a reduced rate consultation.

 

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