Questions? Feedback? powered by Olark live chat software

Small Business Owners Arrested For Tax Evasion

Luxembourg Signs Model 1 FATCA Agreement – Do You Think You Can Get Away With Moving Your Money Before FATCA Kicks In to avoid detection?
April 7, 2014
tax audit cash business
Think That Your Asset Manager Has Your Back? Think Again.
April 18, 2014

Small Business Owners Arrested For Tax Evasion

tax fraud wire fraud newport beach attorney

A couple from Somers Point, New Jersey was arrested last week and charged with federal tax evasion among other charges relating to the financial activity of their pizza shop on the Ocean City Boardwalk.

The U.S. Attorney’s Office said in a release that IRS Criminal Investigation agents arrested Charles and Mary Bangle at their home on April 3rd. Charges ranged from tax evasion, conspiracy and for making false statements to the IRS during the course of their investigation.

The Bangle’s own and operate five Manco and Manco pizza shops throughout New Jersey. They are a strictly cash-based business and the IRS estimates that they earn about 4.5 million dollars per year. It is also alleged that the Bangle’s underreported the earnings of the business to the tune of $981,000. The U.S. Attorney’s Office asserts that the husband and wife team would take portions of the cash earnings of the pizza shops and deposit them into their personal account. The Indictment also indicates that the Bangle’s used the cash from the business to pay for personal expenses. The arrest came as a shock to Charles Bangle’s attorney. He said that his client had been cooperating the IRS for the past two years.

Even if You Cooperate with the IRS – You aren’t Immune from Arrest

The lesson that the Bangle’s are learning the hard way is that even if you are cooperating with the IRS, you aren’t immune from arrest. Whether you own a business or not, if you find out that you are being audited or being investigated by the Criminal Investigation Division of the IRS, you should contact an experienced tax attorney who can help make sure that you don’t end up behind bars.

If you own a business, no matter the size, we can work with you to stay compliant to ensure that you are not getting yourself into a position that would warrant a full criminal investigation like the Bangle’s did. The wise do not wait to get caught up in a mess with the IRS before they seek help. But if you find yourself in a bad situation with the government regarding your taxes, all hope is not lost.

Whether you are being audited by the IRS, are facing a full blown of criminal investigation or are somewhere in between, we can help you every step of the way. Don’t assume that because you are nice with the government, that they will do the same in return. A criminal investigation is very different from an audit. The government is building a criminal case against you and their goal will always be to put you in a federal prison. Don’t let them get the best of you. Contact our offices today.