When it comes to dealing with the IRS, “creative strategies” can quickly turn into federal crimes.
A Virginia landlord and IT specialist recently learned that lesson the hard way. After filing false tax returns and receiving refunds he wasn’t entitled to, he attempted to block the IRS from recovering the money. His efforts included transferring property into a trust, directing income into trust bank accounts, and submitting fabricated documents in an attempt to derail collection efforts.
It didn’t work.
A federal jury convicted him of obstructing the IRS and willfully failing to file tax returns. The result:
✔ 3 years in federal prison
✔ Over $500,000 in tax loss
✔ A felony conviction
✔ A permanent criminal record
According to court records, he also stopped filing tax returns for multiple years despite earning more than $854,000 in income during that period. Instead of resolving the issue properly, he attempted to hide assets and income—actions that significantly increased the severity of the consequences.
The Bigger Lesson for Business Owners and Landlords
There is a major difference between legal tax planning and illegal tax evasion.
Transferring assets to trusts to avoid IRS collections, filing false returns, submitting fabricated documentation, or simply failing to file year after year are all red flags that can trigger criminal investigation—not just civil penalties.
Many taxpayers who find themselves behind believe they can “buy time” or fix it later. Unfortunately, ignoring the problem or attempting to outmaneuver the IRS often escalates the situation from a financial issue to a criminal one.
What You Should Do Instead
If you have:
- Unfiled tax returns
- IRS collection notices
- Large tax balances
- Payroll or trust fund issues
- Concerns about asset exposure
The solution is not concealment — it’s strategic resolution.
At Accutax, we help business owners, landlords, and individuals resolve serious tax problems through structured negotiation, compliance planning, and proactive representation. In many cases, early intervention can prevent liens, levies, wage garnishments, and far worse outcomes.
The IRS takes obstruction and non-filing seriously. The sooner you act, the more options you typically have. Contact us now!
