The Lewis Center resident apparently failed to pay $97,928 in owed income taxes. He owned and operated an online gambling enterprise, an IRS agent said. Between 2008 and 2011, he failed to file income tax returns and failed to pay taxes on $411,197 in gross receipts.
WTTE-TV reports that the man's business is considered an illegal operation by the U.S. Attorney. He apparently received payments from Europe and then withdrew cash from his account, the station said.
On its website, the IRS says a person guilty of evading or defeating taxes faces not only the years in prison and large fine, but can also be assessed the costs of prosecution. The IRS also goes after people who willfully fail to collect or pay over taxes from their business. This felony can also result in a maximum 5-year prison sentence, quarter-million-dollar fine and costs of prosecution.
If you're wondering about the definition of tax fraud, and its potential penalties, the IRS defines it as making a return, statement or document verified by a written statement (the little statement at the end of your tax return, for example) that you do not believe to be true. So if you declare $50,000 in income and believe that your income is actually $200,000, you might be found guilty of felony tax fraud. You can face up to three years upon conviction, a fine of up to $250,000 ($500,000 for corporations) and again, the costs of prosecution.
Anyone who believes they might soon be charged with one of these crimes is wise to consider all their options. One possibility is sitting down with an experienced Cleveland tax attorney and going over what is involved with getting in compliance with your back taxes. A knowledgeable attorney will discuss with you your possible defenses and viable options.