The IRS has a special place for those who threaten or obstruct
Lots of people cheat on their taxes. The IRS knows this, and they can’t possibly throw all of them in jail.
If you make them mad enough, however, they will hit you with everything they have.Here is a textbook example of what NOT to do if you’re caught.
Terry DiMartino, a Newington, Connecticut insurance salesman, was recently contacted by the IRS for failing to file his tax returns. The 62-year-old had earned millions of dollars in insurance commissions over the last decade, but hadn’t filed an accurate return or paid his taxes since 1996.
When confronted by the IRS, he brazenly tried to obstruct them by sending them false documents and returns, (one of which requested a $14 million refund!)
DiMartino also sent false and threatening correspondence to the IRS to try to defeat and undermine their investigation, and then proceeded to threaten the insurance companies who were cooperating with the IRS investigation. He also set up nominee entities to hide and conceal his assets.
The IRS was not amused.
DiMartino was convicted in Federal Tax Court of one count of corruptly interfering with the due administration of the tax code, two counts of filing false tax returns, and five counts of willfully failing to file tax returns.
Along with monetary penalties, he faces a maximum sentence of three years in prison for obstructing the IRS, and three years for each of the false tax return charges, plus a year for each count of willfully failing to file tax returns.
The IRS Criminal Investigation Division was involved. According to Special Agent in Charge, Manny Muriel, “Taxes are the price we pay for the public goods and services we want; yet Mr. DiMartino tried to undermine and corrupt the tax system when he attempted to steal $14 million in taxpayer money.” “Furthermore, he tried to intimidate insurance companies that sought to cooperate with the IRS.”
-In other words, he made them mad.