A nurse anesthetist in Pennsylvania has pled guilty to one count of Evasion of Payment of Income Tax and one count of Evasion of Assessment of Income Tax. According to a Department of Justice press release her conduct resulted in tax losses of $766,625.
The defendant's tax problems first developed in 2008. That year the U.S. Tax Court entered an order finding her liable for $280,000 in tax and penalties for tax years 2002 through 2005.
It appears she compounded her problems by attempting to evade payment of these tax liabilities by creating a business entity, directing her employers to pay compensation to a bank account for that business entity, and then using the proceeds to pay personal expenses.
Taxpayers owing past due taxes to the IRS are generally required to submit Financial Information Statements including Forms 433-A, 433-B, and 433-F. The forms are used to determine ability to pay the past due taxes.
The forms are signed under penalty of perjury to be true, correct and complete. By having income deposited into a business account and then using that account to pay personal expenses, it is possible to simultaneously commits crimes related to evasion of payment of currently due taxes, past due taxes, and evasion of assessment of income tax.
She faces a statutory maximum sentence of five years in prison for each count of tax evasion, as well as restitution and monetary penalties.
If you are facing tax problems contact Attorney Adam Brewer to determine what legal options are available to you.