According to a Department of Justice press release, a Pennsylvania man was recently sentenced to 24 months in prison for evading personal and employment taxes. This case showcases the serious consequences of failing to comply with federal tax law, especially those related to employment and income taxes. If you have failed to file a true and honest employment or income tax returns or have not filed employment or income tax returns for one or more quarters / years, it is imperative to discuss your situation with an experienced tax defense attorney.
Defendant Concealed Assets in an Effort to Avoid Paying Over $400,000 in Taxes
Court records reveal that Brandon Aumiller, of Milroy, Pennsylvania, owned an insurance sales business. For tax years 2007, and 2009 through 2011, Aumiller filed personal income tax returns reporting that he owed tax but did not pay his tax liability. He also filed employment tax returns for his business for the third quarter of 2013 and the first two quarters of 2014, reporting taxes owed, but again, failing to make the payments as required.
When the IRS sought to collect the taxes he admitted owing, Aumiller engaged in a scheme to frustrate their efforts. He concealed assets in nominee bank accounts that he controlled, structured real estate deals to hide transactions from the IRS and submitted false financial disclosure forms that left off his bank accounts and real estate assets. In total, Aumiller caused an estimated tax loss of $478,270 to the IRS.
These actions amount to evasion of payment. A charge of attempted evasion of payment of tax only requires that there be taxes due and owing that remain unpaid. Therefore, a charge of attempted evasion of payment of tax may be brought even when a taxpayer has filed correct employment and income tax returns, so that no tax deficiency exists, but subsequently takes actions with the intention of avoiding payment of the tax due on the correctly filed returns by purposefully concealing income or assets during the subsequent collections process. Thus, all that is required is that the taxpayer owes tax, regardless of whether the IRS has yet assessed the taxes. Whether taxes are actually due and thus owed is a question of fact for the jury.
In addition to his 24-month prison sentence, Aumiller was ordered to serve three years of supervised release and to pay approximately $180,000 in restitution to the United States.
The Importance of Addressing Potentially Criminal Tax Issues with the Assistance of Criminal Tax Defense Counsel
The case of the defendant above demonstrates the significant repercussions of evading taxes, including imprisonment and stiff financial penalties. This is especially true of taxpayers who fail to pay over employment-related taxes. As the single-largest source of tax revenue, the federal government has a vested interest in ensuring that employers are paying over amounts that are withheld from the paychecks of employees. Because of that, the penalties for violating employment tax-related laws can be stiff. If you have failed to file a payroll or income tax return or have filed a false employment or income tax returns, it is in your best interest to consult with a seasoned tax attorney. It also makes sense to approach us if you owe income or employment taxes.
