McPhail Fails, Lands in Jail!
The owner of a roofing company, Ronald McPhail, was sentenced to one year and one day in prison for failing to report income from 2014 to 2019. During that time McPhail’s business generated more than 7.1 million dollars in revenue and approximately 2.43 million dollars in income. To conceal the income McPhail cashed customer checks without first depositing them, and asked his customers for payments in sequentially numbered checks in amounts less than $10,000. He then cashed the checks at different bank branches on different days.
In addition to the prison sentence he was ordered to pay a fine of $10,000 and restitution to the IRS in the amount of $798,494.
The bottom line is failure to report all of your income on your tax return is more expensive than if you would have paid the taxes in the first place.