Last month, we led with a convoluted tax scheme, so why not keep the trend going! Douglas K. Mittleider of Adairsville, Georgia, pleaded guilty to deceptively and actively hiding taxable income from long-term care facilities he operated throughout the U.S. As early as 2004, the IRS assessed against him personally the employment taxes Mittleider had not paid, and by at least November 2011, Mittleider took multiple steps to conceal business funds and impede the IRS’s ability to collect his outstanding tax liability. Mittleider also caused the creation of new operating companies and bank accounts to make it more difficult for the IRS to locate assets and levy accounts. In total, Mittleider’s conduct caused a tax loss to the IRS of more than $9.5 million. When he is sentenced in December, it’s expected he’ll not only serve at least three years, but will have fines, penalties, and restitution.
THIS one is right out of the movies! A federal grand jury in Salt Lake City returned an indictment, unsealed today, charging Paul Kenneth Cromar with tax evasion, obstructing the IRS and forcibly retaking property that had been seized by the government to pay his outstanding tax debt. Cromar owned a freelance film and media production company and for at least six years, did not file any federal income tax returns or pay any tax. When audited, he was assessed with $703,266.96 in taxes, interest and penalties. When a court ordered the sale of his home, Cromar occupied it, fortified it, and refused to allow entry! If he’s found guilty, he’ll not only face the tax bill he’s been avoiding, but also, a lengthy prison sentence far in excess of the tax evasion charges.
…And this one will certainly be hard to believe, but guess what? The U.S. District Court for the Southern District of Texas is seeking to permanently bar a Houston-area tax return preparer and her business from preparing federal income tax returns. The complaint alleges that Crystal Ojeda prepared over 10,000 federal income tax returns and in a substantial number of these returns, Ojeda significantly overstated her customers’ tax refund amounts.