The self-proclaimed “Tax Beast” was recently sentenced to three years in prison and ordered to pay $892,902 to the Internal Revenue Service after filing fraudulent tax returns. The criminal matter reminds others of the powerful reach of the IRS and the potential penalties that can result from being convicted of tax crimes.
The Tax Beast’s Rise and Fall
The 35-year old man ran a tax preparation service called Roddy Solutions. In his advertising materials to the public, he would refer to himself as the “Tax Beast,” emphasizing his knowledge of the tax law and his ability to maximize income tax returns. He obtained tax documents from clients and prepared false tax returns in which he claimed false tax credits or included false business expenses on the returns to increase the tax returns clients received or minimize tax liability.
After an IRS criminal tax investigation, the man was indicted in July 2016. The IRS criminal investigation was led by a special agent in charge out of the Cincinnati office. Assistant U.S. Attorney Antoinette Bacon prosecuted the case, securing the sentence of 42 months and restitution totaling nearly $900,000.
Examples of Criminal Tax Fraud
While the IRS does not consider it criminal to try to validly reduce tax liability or to make a mistake when preparing a tax return. Fraud depends on your intent to misrepresent, conceal or alter facts in an attempt to deceive the IRS. Some behaviors that may result in criminal tax charges include:
- Using a false Social Security number to file a fraudulent tax return
- Not reporting income or business payments made in cash
- Inflating the value of business expenses
- Creating non-existent business expenses to reduce tax liability
- Creating false checks or other records for purported business expenses
- Knowingly underreporting income
- Destroying records or accounting books to conceal tax evasion
- Transferring assets for the purpose of defrauding the IRS
- Concealing foreign bank accounts from the IRS
- Knowingly reporting personal expenses as business expenses
- Claiming married status when single or claiming a dependent who was never supported
- Failing to file tax returns when required to do so
- Failing to file tax returns when previously contacted by the IRS due to the failure to file
If you have engaged in any of the conduct described above, you may face significant consequences, such as an IRS tax audit, years of imprisonment, hefty fines and restitution payments.
Contact an Experienced Tax Attorney for Assistance
For criminal tax defense, contact the experienced attorneys at Robert J. Fedor Esq., LLC. An experienced IRS tax lawyer from our firm can assist you with charges involving fraudulent tax returns, false statements or other criminal tax matters. We can assess your situation and determine the options available to you while crafting a customized legal strategy to protect your rights and freedom.
