The IRS Can Tell The Difference Between $14,885 and $200,000

Suppose you’re in court testifying in a civil case. You’re asked what your income is. You tell the truth (of course, you’re under oath) that you make $200,000. No problem, right?

Unless your tax return says you made $14,885. And the IRS discovers your testimony. Even I could probably get a conviction for tax fraud (and I’m not an attorney). And, to make matters worse, you’re a “juicy” target, a former politician.

So it goes for the former mayor of Azusa, a Los Angeles suburb. Stephen Alexander was convicted on Friday of tax fraud and faces up to three years in federal prison when he’s sentenced in June. The story appears in the Los Angeles Times (one-time registration required).

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