According to a Department of Justice press release, a North Carolina resident was sentenced to serve a year and a half in a federal prison after being convicted on charges relating to obstructing the Internal Revenue Service. According to court documents, Billy Darryl Floyd of Monroe, North Carolina committed various acts to obstruct the IRS in their attempt to collect taxes owed.
Between October 2007 and September 2011, Floyd took several steps to make it difficult for the IRS to collect taxes they were owed. First, Floyd filed several years of federal tax returns falsely indicating that he had earned no income. When the IRS notified Floyd that he had outstanding taxes due, he attempted to repay them with “Surety Bonds” which he purported to have a fair market value equal to his tax debt.
When the IRS determined that the Surety Bonds provided to them by Floyd were worth nothing, they attempted to collect his outstanding debt by other means. The IRS seized property from Floyd and attempted to sell it at a public auction. When Floyd got word of the auction, he attended and when potential buyers placed bids, he was disruptive and tried to convince them that the sale was illegal and good title would not be transferred. Due to Floyd’s disruption, the IRS was forced to cancel the auction and lost out on potential sale proceeds.
A federal judge sentenced Floyd to serve 18 months in prison. Once he is released, he will serve one year of supervised release. Finally, Floyd was ordered to pay $170,471 in restitution to the IRS.
The key takeaway from this story is that instead of taking matters into your own hands when the IRS or state taxing authority put you in their crosshairs, advice should be sought from an experienced tax defense attorney. Antagonizing the government may give taxpayers short-term satisfaction, it will almost certainly cause more problems in the long-term.
A tax defense attorney has knowledge of technical tax concepts as well as extensive education in criminal law, criminal tax procedure, constitutional law, and evidence rules. The goal of a tax lawyer is to help you develop a path to resolution while minimizing the potential negative consequences of a tax examination or criminal tax investigation.
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 and assisting them traverse a myriad of different tax situations. Our team of zealous advocates are ready to assist you in resolving any issues you may have or foresee having with the IRS or state taxing authorities. Don’t let the fear of a tax examination or criminal tax charges keep you up at night. Contact the Tax Law Offices of David W. Klasing today for a reduced-rate consultation.
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