Robert J. Fedor, Esq., L.L.C.

Punishment and penalties associated with tax crimes often harsh

It's often difficult to impossible to be good at everything. Many small business owners, however, try to not only run a successful business, but also keep accurate financial records and file necessary tax documents. Sometimes, despite best intentions and efforts, critical errors are made that can result in criminal charges related to tax evasion and tax fraud.

One dentist was recently sentenced to nearly two years in federal prison and fined $50,000. The 47-year-old dentist was found guilty on charges of tax evasion that stemmed from failing to report income during bankruptcy proceedings.

According to court documents, the man was accused of hiding assets during bankruptcy proceedings that totaled roughly $1.3 million. Additionally, the dentist was accused of failing to pay taxes on an estimated $800,000 of income.

The income was allegedly generated between 2005 and 2008 while the dentist's mobile practice traveled to service nursing home residents. During this time, officials contend the 47-year-old amassed funds in excess of $2.6 million related to dental services.

Despite these alleged substantial earnings, the 47-year-old filed for bankruptcy during 2008. It was at this time, officials contend, that he failed to disclose the $800,000 in income. In addition to the man's prison sentence and hefty fine, he has also been ordered to repay nearly $70,000 to the bankruptcy trustee and faces two years probation upon his release from prison.

This case proves the seriousness of criminal charges related to tax crimes such as tax evasion. It also provides a good case for why Ohio residents accused of such crimes should seek the advice and counsel of a criminal tax attorney.

Source: New, "Mahwah dentist gets 21 months for tax evasion, bankruptcy fraud," Dan Ivers, June 12, 2013