I was joking with a client today about how the computer age has really cut back on the amount of paper we deal with. Yeah, right. I buy paper by the case at Costco. There’s a dermatologist in West Virginia who wishes that good records weren’t kept.
David Tolliver has a dermatology practice in Bluefield, West Virginia. On his tax return, he showed income of about $35,000. And that’s how he paid his taxes.
But that’s what he told the government. He told the truth when he applied for some loans; he noted that his income was between $150,000 and $500,000. Court documents show his income was about $385,000 a year. So what happened to the other $350,000?
The money apparently made its way to some trusts. The trusts, though, were controlled by Dr. Tolliver, and he used the money to buy expensive cars and remodel his home. Somewhere along the way, the IRS and the Department of Justice picked up the scent of a scam.
With a loss to the Treasury in taxes of around $130,000, and a case that was paper-made, Dr. Tolliver pleaded guilty to filing a false tax return. He’ll likely have to make restitution, and he’s looking at 18 to 24 months at ClubFed. The trust looked so good on the surface as a tax shelter…but it’s what’s underneath that counts.