According to a Department of Justice press release, a Utah man was found guilty of tax evasion and forcibly retaking property seized by the government to cover his substantial tax debt. This case underscores the critical importance of compliance with federal tax laws and the potential repercussions of defying them. If you have failed to file a tax return for one or more years, have filed a false tax return, or have received notice from the IRS that they will open an examination into your tax history, it is in your best interest to consult with an experienced tax defense attorney for further guidance.
Defendant Operated Business and Avoided Tax Obligations for Years
Court documents and trial evidence reveal that Paul Kenneth Cromar, who owned a home in Cedar Hills, Utah, and operated Blue Moon Productions LLC, a freelance film production company, failed to file federal income tax returns or pay any taxes from 1999 through 2005. In 2007, following an audit, the IRS assessed Cromar with $703,266.96 in taxes, interest, and penalties. Despite this assessment, Cromar made no payments towards his outstanding debt. Consequently, the government initiated a civil suit to foreclose on his home to satisfy the owed taxes.
Despite participating in several court proceedings, a federal judge ultimately ordered the sale of Cromar’s home at auction to pay off a portion of his tax debt. In a desperate attempt to stop the sale, Cromar filed fraudulent documents on the property’s title and with the IRS, intimidated potential buyers, and harassed IRS personnel by filing frivolous lawsuits against them, personally. Just before the sale was finalized, Cromar physically broke into the home and, with others assistance, unlawfully occupied it for five months. During this period, he fortified the house with weapons, sandbags, and strategically placed wooden boards.
Through the actions described above, Cromar caused a total tax loss to the IRS of over $1,174,000. The jury convicted Cromar of one count of tax evasion and one count of forcibly rescuing seized property. Cromar is scheduled for sentencing at a later date, facing a maximum penalty of five years in prison for tax evasion and two years in prison for forcibly retaking seized property. He also faces a period of supervised release and may be ordered to pay restitution.
Importance of Compliance and Seeking Legal Assistance
The case of Paul Kenneth Cromar above vividly illustrates the severe penalties that can result from failing to comply with federal tax laws and attempting to obstruct the IRS and other government agencies. If you have failed to file tax returns or are dealing with outstanding tax debt, it is crucial to seek the assistance of an experienced tax defense attorney. Taking proactive steps to come into compliance can help resolve these issues and prevent the situation from escalating further. The sooner you address these matters, the sooner you can alleviate the associated stress and legal risks.
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Regardless of your business or estate needs, the professionals at the Tax Law Offices of David W. Klasing are here for you. We are open for business and our team will help ensure that your business is too. Contact the Law Offices of David W. Klasing today to discuss your business with one of our professionals.
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