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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.
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.
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.
“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).
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.
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!