Tax News

CCH (cch.taxgroup.com) reports:

  An individual's sentence for willful tax evasion and failure to collect and pay over payroll taxes was incorrectly calculated because the amount of tax loss used in sentencing improperly included the same amount twice. The individual, as a responsible party of a corporation, did not withhold tax from his own wages, and as an individual did not pay tax on those wages. These funds, however, were only subject to being taxed once, Similarly, the restitution order should have included the amount only once.

  Further, the individual's offense level under the sentencing guidelines was erroneously enhanced for abusing his position of public or private trust. Although the IRS was the victim of the individual's charged conduct, the individual was not in a position of trust in relation to the IRS because his only duty was to collect and pay over the payroll taxes. However, the court properly imposed a sophisticated means enhancement because the individual sought to hide his ownership interest in a financial advisory firm and established various business entities to disguise the distribution of profits. The individual's sentence was also properly enhanced for perjury because his trial testimony was false, material and intended to affect the outcome of the trial.

  Vacating and remanding an unreported DC Ohio decision.

M.W. May, CA-6, 2009-1 USTC ¶50,444

Other References:

 
Code Sec. 7201

 
Code Sec. 7202

  CCH Reference - 2009FED ¶41,318.22

  CCH Reference - 2009FED ¶41,318.221

  CCH Reference - 2009FED ¶41,318.222

  CCH Reference - 2009FED ¶41,318.224

  Tax Research Consultant

  CCH Reference - TRC IRS: 66,462
CCH Reference - TRC IRS: 66,462.10
CCH Reference - TRC IRS: 66,462.20