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District Court Sentences Former CEO to 27 Months in Prison for Repeatedly Filing False Tax Returns for his Investment Firm

Playing Chicken

A district court sentenced a former CEO to 27 months in prison and one year of supervised release.  The former CEO repeatedly filed false tax returns for his investment firm.  Guidelines for the crime were 27-33 months. At sentencing the IRS was unpersuaded to give the former CEO probation.

The defense for the former CEO tried to lay out mitigating factors and pointed to the fact the former CEO had no prior convictions any level including the local, state and federal levels. The person was a decent individual who created about 100 jobs during his tenure. In this light, the defendant was given 27 months in federal prison.

Editor’s Comments

Unfortunately, a lot of people try to play the IRS. This is a very bad idea. If your position is not supported by law, any law; or, if your expenses are not supported by fact, short and simple. Don’t!

Every time a practitioner or officer of a company signs a tax return, the potential for monetary fines, conviction, and up to and including prison exist. The question becomes, do I want to risk prison to shave a few dollars on my tax return or on a client’s tax return. The answer should be simple. Do not take deductions or not include income on a legally unsupported position.

By: Basi & Basi at the Center for Financial, Legal and Tax Planning for Transworld M&A Advisors