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May 1, 2019


IRS targets 3 professions in 7 tax cases

The Internal Revenue Service (IRS) has started 2019 strong. In addition to collecting taxes in April, the agency has also already finished up seven big tax cases. These cases targeted three specific professions:

  • Healthcare. The IRS and Department of Justice (DOJ) continue to crackdown on allegations of healthcare fraud. The government has reviewed every profession that can request a payment from Medicare, including physicians, nurses, medical labs, pharmacies, chiropractors, dentists and home health care facilities. The agencies watch for a submission of false claims for payment to Medicare and failure to properly report funds to evade tax obligations. The government recently finished a case involving a Texas woman who allegedly filed claims leading to $4 million in wrongful payments. The prosecution stated the woman of earned over $1 million through the alleged scheme and attempted to avoid income tax obligations on the funds. The court found in favor of the government and ordered the woman pay over $4 million in restitution.
  • Tax preparation professionals. The IRS also had two cases involving tax preparation professionals. In both the prosecution accused the professionals of preparing false tax returns. The court found in favor of the prosecution in both cases and sentenced both to imprisonment. These cases show the agency’s continued scrutiny of the tax return profession.
  • Business owners. The government also brought charges against restaurant owners, real estate developers and trucking company owners. The IRS stated these entrepreneurs failed to properly report business income. As such, the business owners were accused of tax evasion. The penalties included retribution payments and prison time.

These cases highlight the government’s focus on tax evasion over may different types of professions.

Tax Evasion