As we have reported previously; the IRS is getting serious about tax evasion schemes. Most of our stories about targets of federal investigations that have ended in prison time have involved personal taxes and the sheltering of assets overseas. Though that hunt is still ongoing, the IRS has not ceased to stop investigating United States-based businesses that may not necessarily be playing by the rules. That is the case for a former accountant of a popular local Pennsylvania diner.
William Frio, the 58 year-old former accountant of the Nifty Fifty Diner chain has been indicted on a slew of tax evasion charges including conspiracy to defraud the United States government. According to a DOJ press release, he is accused of intentionally losing track and therefore not accounting for over $15 million dollars in gross receipts. The investigation into Frio is a result of an investigation into the entire Nifty Fifty business by the Criminal Investigations Division of the IRS.
The local establishment has had its’ share of problems with the Service and Frio is the sixth individual to be indicted because of its’ scheme to defraud the government. Owners Leo McGlynn and Robert Mattei were previously sentenced to 36 and 15 months in federal prison. Three other defendants were also charged and received federal prison sentences that ran a year at the least and over two years for one.
Charges relating to the business were based on activity that involved all six of the defendants funneling monies into a “hidden” bank account and subsequently reporting zero to very little income on their tax returns. But this isn’t the only thing that Frio was busted for. Because the IRS was scrutinizing the business, some of his personal illegal activity was discovered, including filing false documents with lenders and filing false returns with the IRS. William Frio could realistically spend from three to five years in prison and owe the IRS nearly $3 million in restitution.
Readers may think that the IRS wouldn’t go after them like they did in the case of William Frio, but this story is a perfect example of why every American citizen should be concerned if they have any undisclosed assets or have filed a return that was less than honest.
The moral of this story is that the IRS will stop at nothing to ensure that you pay them every single cent that you may owe. It is definitely possible that Mr. Frio wouldn’t have been found out had the Nifty Fifty diner not been investigated by the Service. But because it was, his life has been turned upside down. This goes to show you that even if YOU play it cool and lay low, the IRS will still find you and the Department of Justice will throw you in prison if they get the chance.
If have assets that you haven’t reported or you have filed tax returns that are fraudulent, you need to speak with an experienced tax attorney today. If you are currently the focus of an IRS Criminal Investigations Division probe or have charges pending against you, it’s not too late to get the legal representation that you deserve. At the Tax Law Offices of David W. Klasing, our legal team can make sure that you are on the right track to either avoid a full-blown criminal investigation or to help get you out of one with as little damage as possible. Life is too short to worry about missing out on your family and friends while you waste your life away in a federal prison. Contact us today; we’re here to help.