Another week, some more bites out of crime in the tax world. We’ll hit both coasts today, and even have some pot tax news.
First, a man in Racine, Wisconsin apparently liked my Bozo Tax Tip #8. Yep, he allegedly sent off a bundle of phony returns to the IRS, and like Mr. Graham, he got caught. Samuel Burnette has been indicted on charges of filing more than 30 false tax returns. Mr. Burnette has pleaded not guilty to the charges.
Locally, a Newport Beach business owner pleaded guilty to evading about $356,000 in taxes. Robert Hanna owns Newport Tux and Uniform, a business servicing hotels and casinos both here in Southern California and in Las Vegas. He admitted to using bartering to hide income and taxes (by the way, I’ll be writing about bartering in Bozo Tax Tip #7 tomorrow), and paying personal expenses from his business account. He faces five years at ClubFed and a $100,000 fine plus restitution.
Medical marijuana has been in the news throughout the country. It’s legal status is still somewhat hazy as federal law enforcement agencies are still fighting state laws that make such sales “legal.” That’s one issue. Another is for California medical marijuana clubs. You better collect the sales tax, or the Board of Equalization will be calling. Yes, the BOE put out a notice reminding cannabis clubs to collect the sales tax or face interest and penalties.
Moving now to the East Coast, a Stamford, Connecticut attorney will probably not be the keynote speaker for any more Columbus Day parades. Joseph Richichi, a high profile attorney, will be sentenced in October after pleading guilty to one charge of tax evasion. Mr. Richichi failed to tell his tax preparer about $2.8 million in income he received, and he hid $1.8 million more. He’s made restitution already, but he does face a term at ClubFed and a $100,000 fine.
Moving up the East Coast, the spotlight shifts to picturesque Cape Cod, where a concrete company’s business may have sprung a leak. The father and son owners are accused of hiding income, structuring transactions through purchasing travelers checks, and understating their gross receipts. Robert and Steven Belanger face terms at ClubFed and possible fines if the allegations are proved in court.
A pretty busy week for the criminal element in the tax world. Remember my motto: If it sounds too good to be true, it probably is.