Routine Traffic Stop Uncovers $1.8 Million Dollar Tax Fraud Scheme

Richard Lara of Providence, Rhode Island appeared before the U.S. District Court for the District of Rhode Island on December 4, 2014 to receive his sentence to federal prison after pleading guilty to charges of aggravated identity theft, theft of government property, and conspiracy.  Lara along with Julian Balbi conspired to commit a massive tax fraud scheme for a million dollar payoff. Balbi, who plead guilty in June, was sentenced on September 18, 2014. The young men, both 23, stole identifyi...

U.S. Tax Court Holds Pharmacist Owes IRS Nearly A Quarter Million Dollars

The United States Tax Court has held that convicted ex-Maryland pharmacist Steven Sodipo liable for over $190,000 in back taxes, penalties, and additions. According to the final determinations from an IRS audit triggered by his criminal convictions, Sodipo established various business entities in efforts to evade his tax liabilities from 2005 to 2007. Additionally, the IRS Revenue Agent assigned to the case performed a deposit analysis of Sodipo's bank statements and found over a quarter of a mi...

IRS Too Slow in Tax Fraud Complaint Processing

According to a report published on September 4th by the Treasury Inspector General for Tax Administration (TIGTA), the Internal Revenue Service is processing citizen complaints of tax fraud by tax preparers slowly and inefficiently. In 2013, about 77 million individual tax returns were prepared by paid preparers, and fraud committed by tax return preparers is an increasingly substantial issue for both taxpayers and the IRS.   Processing of taxpayer complaints by the IRS regarding tax preparer fr...

The IRS Officer is the Criminal?

It seems as if former IRS employee Missy Sledge tried to pull the wool over the eyes of her former employer. Sledge, who was responsible for conducting due diligence on “suspicious” looking tax returns, was arrested at her desk in Atlanta, Georgia on November 26, 2013 and charged with one count of mail fraud and one count of aggravated identity theft, to which she later plead guilty on February 18, 2014 according to Bloomberg Daily. Missy conspired alongside several other individuals, who remai...