The former owner of Bullies Sports Bar and Grill was sentenced to 5 years' probation and 6 months of house arrest for not withholding employee taxes.
An investigation of the business was held by treasury inspector general agents, after investigating they discovered $49,916 was owed in back employee withholding taxes.What happened?
The business owner sold his restaurant October, 2006. Instead of paying the employee withholding taxes as required by law, he deposited profit he made from the sale of his business into his wife's checking account. That was only the first bad move.Strike Two:
When the IRS filed tax levied against his wife's account and a second account in the restaurant owner's name, the owner obtained a release of the levy on the second account, then used that to create his own fraudulent release of levy for his wife's account. When the bank received the fake release, the did release the fund. The restaurant owner then had his wife liquidate the funds in cash and bank checks.The Law Catches Up:
Of course, he was caught. Held guilty to one count of corrupt endeavor to impede an employee of the United States acting in an official capacity under IRS laws.The Punishment:
In addition to probation and home confinement, U.S. District Judge Thomas Rose ordered the owner to pay restitution of $49,916 to the IRS.
Here are three important take-aways to remember if you don't want to get caught by the IRS:1)
NEVER allow someone to transfer funds to your account for "Safekeeping" so they can avoid the IRS. Like the wife in this story, you'll go down with the tax evader!2)
DON'T think you'll get away with it. It may take a while, but you WILL get caught!3)
BEWARE! If you own a small business, you are a prime target for the IRS. The IRS believes small business owners evade tax laws the most, and take extra time to scan small business cases carefully.
If you try to fool the IRS they'll take your money, your business, even your freedom if necessary to prove their point.