If you've got an IRS letter on your desk right now, you have a decision to make, and the clock matters. I'm Darrin Mish. I've spent 32 years helping people with exactly this kind of situation. Here's what you should do.
Brooklyn Ophthalmologist Guilty
Brooklyn Ophthalmologist Mark S. Hughes was charged after failing to pay income tax of more than $800,000 between 2003 and 2009. He agreed to enter a guilty plea to charges of tax evasion and obstruction of a tax audit. Hughes filed an agreement in US District Court in Boston to plead guilty to both charges, according to Christina DiIorio-Sterling, spokeswoman for the office of US Attorney Carmen Ortiz.
Hughes allegedly avoided paying taxes by diverting his earnings from the Stoneham Office of Group Practice where he worked as a practicing ophthalmologist to Omega Consulting Group Inc., a consulting firm that he owned. He allegedly made more than $2 million in contributions to a pension benefit plan through Omega while already participating in a retirement program through Group Practice. Although he knew the $2 million was taxable, he did not pay any taxes on the income.
In 2008, when the IRS launched an audit, Hughes allegedly provided false information about Omega’s business to foil the audit, revealed Ortiz’s office.
Hughes may be jailed for up to 5 years for tax evasion and up to 3 years for obstruction of a tax audit. Both crimes also carry possible fines and supervised releases. But after Hughes’ guilty plea, the US Attorney’s office is likely to recommend a shorter sentence.
Pickerington Woman Guilty
Leslie K. Todd of Pickerington pleaded guilty before US Magistrate Judge Norah McCann King to charges of identity theft and making false claims from the IRS. She faces up to 15 years in jail and $250,000 in fines. Besides that, the plea agreement also demands estitution to the IRS of $89,452.
Todd is alleged to have made 59 false claims for tax refunds between February 2008 and March 2009 using names of inmates who were detained in Franklin County. She also made up information regarding the employer, wage and tax withholding for these inmates on the tax return forms she filed. Then she opened online bank accounts and directed the false tax refunds to be transferred electronically into these accounts.
To access the funds in these accounts, Todd obtained prepaid debit cards or ATM card from the bank. By these means, Todd was alleged to have defrauded the IRS of about $118,969. But her scheme was discovered by the IRS Scheme Development Center in the Cincinnati Service Center.
The case was being prosecuted by Assistant US Attorney Brenda Shoemaker.
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