Whether by mistake or on purpose, failure to report income tax can lead to severe legal consequences. Recently, an accounting supervisor in Texas received a sentence of 18 months in federal prison for embezzlement and tax evasion.
According to a Star-Telegram news report, a 50-year-old woman from Fort Worth, Texas worked as an accounting supervisor for Pharmacy Healthcare. Between the years of 2003 and 2007, the woman purportedly forged company checks and deposited money into her personal banking account. Over the four-year period, she allegedly embezzled over $355,000. Additionally, she neglected to report any of the money as taxable income.
During her court proceedings, the woman also admitted that she had understated her earnings on her taxes in 2006. She claimed that she and her spouse earned a total of $38,506. Although, according to tax documents, they had actually earned over $143,000 that year.
On September 19, the woman must surrender herself to authorities and report to prison. The judge also ordered that she pay $355,991 in legal restitution to the parent company of her former employer.
Charges of tax evasion, and all white collar crimes, can result in severe punishment. Prison time and fines, along with the social and professional stigmas that accompany these types of offenses can be lifelong burdens. Nonetheless, many people who are charged with tax evasion never intended for the situation to become so dire. Legal counsel, knowledgeable in tax law may be able to help those accused receive a fair trial as well as negotiate a possible settlement.
Source: The Star Telegram, “Ex-pharmacy company official sentenced for tax evasion,” Domingo Ramirez Jr., July 26, 2011