The owner of a now-defunct Laramie ammunition manufacturing company will spend time in prison and has been ordered to reimburse more than $350,000 of unpaid federal tax withholdings. The Department of Justice announced recently that Curtis Allen Perry had been sentenced to 18 months in federal prison for multiple counts of tax evasion.
Perry had pled guilty to 12 charges at an earlier hearing as part of a plea agreement. But the court found Perry guilty of additional charges that were not included in the agreement. This should remind us that plea agreements may not deliver what they promise in theory.
To get the immediate and dedicated tax law assistance that you need right now, call the dual licensed Criminal Tax Defense Attorneys & CPAs at the Tax Law Offices of David W. Klasing. Schedule your first-time case evaluation for a reduced rate by calling our offices at (800) 681-1295 today.
Defendant Pled Guilty to 12 Charges, Sentenced to 18 Months Plus Restitution
Case Background
While operating an ammunition manufacturing and sales business in Laramie from 2013 to 2016 under the Ammo Kan brand, Curtis Allan Perry of Windsor, Colorado, failed to pay federal taxes that were withheld from his employees’ paychecks, according to the U.S. Department of Justice.
“Although he withheld federal taxes from his employees’ paychecks, Perry did not pay those taxes to the Internal Revenue Service,” says L. Robert Murray, U.S. Attorney for the District of Wyoming, in a press release. “Instead, Perry used the unpaid employment taxes to support himself and his business.”
Wyoming Secretary of State’s Office records shows Ammo Kan opened in 2013 and remained in operation into 2016, when the company filed for Chapter 11 bankruptcy. Perry also is listed as the registered agent for another business named Ammo Kan in Grand Junction, Colorado, according to the Colorado Secretary of State’s Office.
That business was registered in 2009 and listed as delinquent as of December 1, 2013. Colorado records also show Perry was hit with a federal tax lien for more than $30,000 in taxes that were unpaid in 2014.
Plea Agreement and Sentencing
Perry pled guilty as part of a plea agreement to 12 counts of tax evasion. During his sentencing, U.S. District Court Judge Nancy D. Freudenthal also found that Perry evaded federal excise taxes on sales of ammunition.
Perry was sentenced to 18 months in prison followed by three years of supervised probation. In addition, Perry was also ordered to pay more than $350,000 in fines and restitution for the unpaid taxes.
Post-Sentencing Messaging
“Employment tax evasion results in the loss of tax revenue to the U.S. government and the loss of future Social Security and Medicare benefits for those employees,” U.S. Attorney Murray said. “Each year, the vast majority of Wyoming businesses follow the tax laws and pay their fair share. Those who willfully evade such obligations should fully expect to be held accountable for their criminal conduct.”
Perry’s latest conviction and sentence should be a message that tax evasion is a serious crime, said Andy Tsui, special agent in charge of the IRS Criminal Investigation Denver Field Office. “The sentence handed down … is a direct reflection of the seriousness of Mr. Perry’s crimes,” Tsui said. “Not only is Perry guilty of crimes against the federal government, but he also attempted to obstruct the IRS’s investigation. These actions will not be tolerated, and the judge’s ruling sends a clear message to others that may believe they are above the law.”
Other government agencies that were involved in the investigation and prosecution of Perry included the IRS’ Criminal Investigation Division (IRS-CI) and Alcohol and Tobacco Tax and Trade Bureau (TTB).
What You Should Know About Plea Agreements for Criminal Tax Charges
If you find yourself in the unfortunate position of being faced with a criminal tax indictment, you may be approached by the prosecutor with a deal. These deals, also known as plea agreements, are arrangements where the defendant in a criminal case agrees to enter a guilty plea in exchange for certain considerations.
These considerations may include a number of different benefits for cooperation. Defendants who accept plea deals may have some of their charges dropped or reduced to less severe charges. In exchange for the guilty plea, the prosecution may also agree to recommend lighter sentencing that may not include jail time.
These potential benefits may seem ideal for a scared defendant who does not want to take their chances in court. However, it is important to understand what a plea agreement means for your case and future.
By entering a guilty plea, a defendant is resigning themselves to a criminal conviction that remains on their record. This can have both personal and professional implications. Obtaining convictions is a primary goal of most prosecutors, so they may attempt to secure that conviction through a plea deal where they are afraid that they might not have enough evidence to prove their case in court.
You should also know that when a prosecutor offers lighter sentencing recommendations, they are nothing more than recommendations. Although judges will often consider the prosecutor’s recommendations, they are not obligated to follow them. In Perry’s case, the court found that Perry had evaded excise tax, which was not a part of the plea agreement. When evaluating a plea agreement, you should always consider the possibility that the court decides to impose the maximum available penalty.
When you agree to a plea deal, you are waiving your right to a trial. This is a serious decision that should not be made without thorough assessment from a dual licensed Criminal Tax Defense Attorney & CPA.
Concerned About Criminal Tax Charges? Call the Tax Law Offices of David W. Klasing
If you are dealing with serious tax matters, you deserve tax assistance that you can rely on. Schedule your first reduced-rate case evaluation with our Criminal Tax Defense Lawyers by calling (800) 681-1295 today or schedule online here.
If you have failed to file a tax return for one or more years or have taken a position on a tax return that could not be supported upon an IRS or state tax authority audit, eggshell audit, reverse eggshell audit, or criminal tax investigation, it is in your best interest to contact an experienced tax defense attorney to determine your best route back into federal or state tax compliance without facing criminal prosecution.
Note: As long as a taxpayer that has willfully committed tax crimes (potentially including non-filed foreign information returns coupled with affirmative evasion of U.S. income tax on offshore income) self-reports the tax fraud (including a pattern of non-filed returns) through a domestic or offshore voluntary disclosurebefore the IRS has started an audit or criminal tax investigation / prosecution, the taxpayer can ordinarily be successfully brought back into tax compliance and receive a nearly guaranteed pass on criminal tax prosecution and simultaneously often receive a break on the civil penalties that would otherwise apply.
It is imperative that you hire an experienced and reputable criminal tax defense attorney to take you through the voluntary disclosure process. Only an Attorney has the Attorney Client Privilege and Work Product Privileges that will prevent the very professional that you hire from being potentially being forced to become a witness against you, especially where they prepared the returns that need to be amended, in a subsequent criminal tax audit, investigation or prosecution.
Moreover, only an Attorney can enter you into a voluntary disclosure without engaging in the unauthorized practice of law (a crime in itself). Only an Attorney trained in Criminal Tax Defense fully understands the risks and rewards involved in voluntary disclosures and how to protect you if you do not qualify for a voluntary disclosure.
As uniquely qualified and extensively experienced Criminal Tax Defense Tax Attorneys, KovelCPAs and EAs, our firm provides a one stop shop to efficiently achieve the optimal and predictable results that simultaneously protect your liberty and your net worth. See our Testimonials to see what our clients have to say about us!
More Commonly Asked Tax Audit Questions
- How should Tax Audits be Handled by Criminal Tax Counsel?
- How to survive audit when I cheated on return being audited
- What is an eggshell audit?
- What is a reverse egg shell audit?
- Why is a reverse egg shell audit dangerous for a taxpayer?
- Warning signs of a criminal referral from an IRS audit
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- How are the 4 goals and outcomes 1 and 2 best obtained?
- What are the possible outcomes of an egg shell audit?
- Is it my right to know why I was selected for examination?
- What can I do to prepare for an audit?
- What is an IRS civil examination?
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- Options if I am unable to pay at the conclusion of audit
- What a 30 or 90-Day Letter from the IRS means
- What is involved with appealing disagreements?
- Rights to disagree with IRS tax auditor’s findings
- Can I stop the IRS from repeatedly auditing me?
- Can I have the examination transferred to another area?
- Can I record my IRS interview and is it a good idea?
- How many years of returns are at risk during an audit?
- Common reasons for the IRS to conduct a tax audit
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- Have to agree to interview by taxing authority directly?
- Are all audits the same?
- What should I do if the IRS is investigating me?
- What if I don’t respond to a taxing authority audit notice
- Your rights during an IRS tax audit
- Risks of attending an IRS audit without a tax lawyer
- Most common audit technique used by taxing authorities
- Don’t go into an IRS audit without representation
- Why hire an attorney to represent me in an audit?
- Why hire David W. Klasing to represent me in an audit
Questions and Answers for Criminal Tax Representation
- When tax defense counsel parallels tax crime investigation
- Guilty of tax obstruction by backdating documents?
- To be found guilty of tax obstruction must a person actually be successful in impeding the IRS’s functions?
- Help! The Document I Gave the IRS Had False Information
- Tax crime aiding or assisting false return IRC §7206(2)
- What is the crime known as tax obstruction § 7212?
- What is the difference between tax perjury and tax evasion?
- What is the tax crime commonly known as tax perjury?
- What is a Klein Conspiracy?
- Increased possibility of civil action in IRS investigation
- Am I Guilty of Tax Evasion if the Law is Vague?
- What happens if the IRS thinks I committed tax crimes?
- What are ways to defend against a tax evasion charge?
- Difference between criminal tax evasion and civil tax fraud
- What accounting method does the IRS use for tax fraud
- Can I Change Accounting Method to the Accrual Method
- What is the willfulness requirement for tax evasion?
- I didn’t know I committed tax fraud. Can I get off?
- Concealed assets from IRS. Can I avoid tax evasion charges
- How government proves I willfully engaged in tax evasion
- What is the venue or court where a tax crime case is heard?
- Must the IRS prove tax crimes beyond a reasonable doubt?
- Is it a crime to make false statements to the IRS?
- Will the IRS overlook my tax evasion if it’s minor?
- Failed to tell IRS about my nominee account
- Audit risk with cash based business transactions
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- Government says I attempted to evade my taxes. Now what?
- I forgot to pay my taxes or estimated tax. Is this a crime?
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- 5 Ways to Respond to Tax Evasion Charges
- Being audited after using a tax professional
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- What is a proffer agreement and what are the risks?
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Questions and Answers on Unfiled Back Taxes
- What are the common issues that non-filers face?
- Risk of audit after filing delinquent prior year returns
- Can substitute return deficiency be discharge in bankruptcy
- Substitute return modified by subsequent delinquent return?
- Do I file every delinquent return for each missing year?
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- Can Law Office of David W. Klasing help me re-enter system?
- Will tax collection taken by authorities affect my credit
- I concealed bank accounts from the government
- Forgetting or failing to file tax return
