Tax Crimes & Tax Tips – the Dayes Daily Wire
- Norris Lozano, Senior Tax Attorney
- Tim Tonkin, Chief Operating Officer
- Dayes Law Group – Tax Resolution & Compliance Attorneys
Tax Crimes – People Do Crazy Things
Sarasota, FL – In a startling revelation that has stunned the local business community, Olga Dedovets, co-owner of the successful Suncastle Roofing, has been convicted of a serious tax evasion scheme. This high-flying entrepreneur, known for her business acumen and the meteoric rise of her roofing company in Sarasota, has fallen from grace in a tale of ambition, secrecy, and the long arm of the law.
In 2017, Dedovets made a grave misstep that would eventually unravel her successful business and luxury lifestyle: she failed to report over $1 million of income earned by Suncastle Roofing. By concealing this substantial sum and the bank accounts it flowed through from her tax preparer, Dedovets crossed into the murky and dangerous waters of tax evasion. This offense carries with it severe repercussions.
The motives behind Dedovets’ actions remain speculative. Was it greed, a misjudged attempt to protect her assets or a dire underestimation of the federal government’s vigilance? Regardless, the outcome was inevitable: The Internal Revenue Service (IRS) Criminal Investigation unit caught wind of her transgressions and chased her down. She now has pleaded guilty and faces a maximum penalty of three years in federal prison!
Tax Tips – The Obvious – Report Your Income
But how does the IRS uncover her failure to report income in what she apparently thought was a sophisticated tax evasion scheme? While the specifics of Dedovets’ case remain confidential, the IRS Criminal Investigation (CI) division employs a robust arsenal of techniques to sniff out tax fraud:
- Whistleblower Reports: Leveraging insights from insiders, the IRS encourages reports of evasion, which could have played a role in Dedovets’ case. Generally, banks must report “suspicious activities” rather than amount alone.
- Data Analysis: Individuals and businesses must report any cash payments they receive over $10,000 by filing form 8300 with the IRS. Advanced analytics help the IRS spot anomalies and patterns indicative of fraud. Banks report interest income to the IRS on forms 1099INT, and large cash deposits of more than $10,000 must be reported.
- Large Wire Transfers: The Bank Secrecy Act (BSA) also mandates that financial institutions keep records of electronic funds transfers (EFTs) exceeding $3,000. While this is a record-keeping requirement rather than a direct reporting obligation, banks must make these records available to law enforcement upon request. These records can include information about the transfer’s originator, recipient, and amount, which can help trace funds involved in potential criminal activity.
- Audits: Rigorous examinations of tax returns can reveal discrepancies that signal evasion.
- Collaborative Investigations: The IRS often joins forces with other agencies to deepen their investigatory reach.
Through one or more of these methods, the IRS was able to piece together the evidence against Dedovets, leading to her pleading guilty to making a false statement on a tax return.
This case serves as a potent reminder of the consequences of tax evasion and the extensive capabilities of the IRS to uphold the integrity of the tax system. For the community of Sarasota and the business world at large, Olga Dedovets’s fall from a respected entrepreneur and community leader who helped other local businesses to a convicted felon is a cautionary tale that underscores the age-old adage: nothing is certain but death and taxes.’
CALL US AT DAYES LAW GROUP WITH YOUR TAX QUESTIONS AND FOR HELP ON ANY TAX ISSUE.