According to a Department of Justice press release, a Massachusetts man recently pleaded guilty to tax evasion after failing to pay tax on profits he earned as a commercial fisherman. This story serves as an example that the IRS will pursue a criminal tax investigation and refer cases to the Department of Justice, Income Tax Division for prosecution regardless of a taxpayer’s profession and that tax authorities don’t only go after millionaires. If you have failed to file a tax return for one or more years, or have filed a tax return that is untruthful, you should seriously consider consulting with a seasoned tax lawyer to determine your level of risk and to determine a strategy to come into tax compliance.
Defendant Used a Check Cashing Scheme to Avoid Depositing His Paychecks in Banks
Court documents reveal that Rodolfo Membreno, a commercial fisherman from Fall River, Massachusetts, admitted to evading taxes on $1.3 million of income earned from 2013 to 2021. Membreno, working primarily out of the Port of New Bedford, failed to report a significant amount of wages. Specifically, he did not file federal income tax returns or pay taxes for the years 2013 to 2019 and for 2021. In 2020, he submitted a tax return that inaccurately claimed excessive business expenses, and although he filed a return for 2012, he did not remit the taxes that he owed.
Membreno’s method of concealing his income involved cashing his paychecks from the fishing companies that he worked for and using the cash for personal expenses, thereby evading the tracking of the funds through bank records. His actions resulted in a tax loss to the IRS totaling approximately $293,000
Membreno faces up to five years in prison. Additionally, he could be sentenced to an additional period of supervised release. Lastly, Membreno could be ordered to pay restitution to the government representing the amount of tax loss that he caused.
Working with a Tax Attorney to Come into Compliance
While Hollywood movies may portray those prosecuted for tax crimes as being extremely wealthy, Americans of all walks of life are targeted by the IRS and the Department of Justice. If you have failed to be truthful in your annual tax filings or have failed to file tax returns altogether, you should contact an experienced tax defense attorney to determine the precise risk that you are facing and what can be done to bring you into tax compliance. You do not have to go up against the IRS alone.
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