IRS Maintains Pursuit of Those Who Fail to Pay Income Taxes

pay income taxesDespite those who wish otherwise, the Internal Revenue Service (IRS) rarely forgets a debt, regardless of celebrity or political profile.


Roger and Nydia Stone have been the target of an IRS audit for some time. Between 2007 and 2011, the couple, and the entities they own and control, underpaid their income taxes. This occurred again in 2018. As a result, they are approximately $2 million in arrears to the IRS.


In 2017, the Stones entered into an agreement with the IRS to pay down their debt by making payments of approximately $20,000 per month. This kind of arrangement often satisfies the IRS and avoids further tax controversy over the life of the agreement—as long as the terms are met. 


Although the agreement was in place, beginning in 2018, the couple transferred approximately $1 million of their assets into a shell company, which they used to pay expenses and employees without appropriate reporting to the government. Thereafter, the couple also funded a trust under their control in which they placed assets to purchase and hold their home. They also stopped paying on the agreement made earlier with the IRS.


Earlier this year, the Department of Justice filed a civil lawsuit in Fort Lauderdale, Florida against the Stones to recover unpaid taxes and fines. The suit asserts the couple used the shell company and the trust to shield their assets, while at the same time maintaining both a “lavish” lifestyle and their debt to the IRS. The lawsuit alleges “The Stones were in substantial debt to the United States at the time of the transfer, rendering them insolvent at the time of the transfer and unable to pay their debt to the United States.”


These types of legal actions are commonly filed each year against taxpayers in similar straits or facing allegations of tax fraud. Sometimes oblivious to the long arm and long memory of the IRS, business owners and individuals making these kinds of moves in plain sight somehow convince themselves the IRS will not continue to pursue the debt. They will.


In this case, Roger Stone is a storied political operative with a presidential pardon for earlier dubious deeds, but little protection from his well-documented tax history. Whether it is Mr. Stone pushing a political agenda, or another taxpayer claiming the legitimacy of a fake deduction—the IRS doesn’t forget.


Aggressive tax defense if you face an IRS criminal tax investigation

The tax attorneys at Robert J. Fedor, Esq., LLC deliver experienced legal guidance if you are questioned about filing false income tax returns or facing tax litigation.  With offices in Chicago and Cleveland, we serve local and international clients. Call 800-579-0997 or contact us today.


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