Press 100 hints; nothing but the tooth; check out; and other highlights from current tax cases.

LeRoy, Minnesota: Tax preparer Craig Jacobson, 67, was sentenced to two years’ probation after pleading guilty to two counts of failure to collect and pay taxes, according to published reports.

Jacobson was reportedly charged after the Minnesota State Tax Office disclosed that he failed to file several tax returns, filed false state and federal tax returns, and failed to pay withholding taxes for four years.

In late 2020, the state began investigating Jacobson after learning of criminal tax violations between 2015 and 2018, according to published reports. During that time, Jacobson reportedly served as CEO of two companies – M&I Tax Accounting and C&C Tax Service Inc., both of which were registered with the state for corporate tax, sales and use tax, and withholding tax accounts.

From 2015 to 2016, M&I reportedly withheld taxes from its employees’ wages but never remitted them. The state of Minnesota reportedly sent M&I more than 60 reminders. From 2017 to 2018, C&C withheld taxes from its employees’ wages, but again, the state stated that no withheld taxes were paid, even though the tax authorities sent an additional 30 reminders.

During the same period, Jacobson reportedly had significant gambling winnings and losses, but his tax returns did not show corresponding federal taxes. A state tax specialist compared Jacobson’s personal tax returns filed for Minnesota with those he filed with the IRS. The two did not match, reports said.

News outlets added that before the deal, Jacobson had been charged with 10 counts of failure to file withholding tax returns, 10 counts of failure to pay withholding tax, four counts of filing false or fraudulent income tax returns and one count of filing a false withholding tax return.

Fort Worth, Texas: A U.S. district court has permanently barred tax preparer Ruben Gonzalez and anyone acting with him or on his behalf from preparing federal tax returns for others. Gonzalez agreed to the temporary restraining order.

Gonzalez is prohibited from using his business, Sin Barreras Income Tax, to prepare tax returns for others. The government’s complaint alleges that in a significant number of tax returns prepared at the business from 2021 through 2023, Gonzalez or his employees substantially inflated clients’ refunds by fabricating or inflating business losses, fabricating deductions for charitable donations, and falsely claiming energy credits and COVID Family Medical Leave Credits. The complaint alleges that Gonzalez cost the U.S. more than $20 million in lost tax revenue from 2021 through 2023.

The injunction requires Gonzalez to notify every person for whom he or tax preparers at Sin Barreras prepared federal tax returns, amended returns or refund applications from 2021 to the present. Gonzalez must also post a copy of the injunction where he does business and post a statement on social media accounts and websites that he is prohibited from preparing tax returns.

Princeton Junction, New Jersey: Gordian A. Ndubizu, a 69-year-old professor and pharmacy co-owner, was convicted of federal income tax evasion and filing false tax returns.

During the 2014 to 2017 tax years, he was a professor of accounting at a university in Pennsylvania and co-owner of Healthcare Pharmacy in Trenton, New Jersey. Healthcare Pharmacy was organized as an S corporation, the income from which accrued to Ndubizu and his wife and had to be reported on their personal income tax returns.

He prepared fraudulent books and records for Healthcare Pharmacy and inflated the cost of goods sold in order to reduce and understate the pharmacy’s profits accruing to himself and his wife. Among other falsehoods, Ndubizu identified certain wire transfers as payments for the purchase of goods sold by the pharmacy, when in fact these wire transfers were made to personal bank accounts under his control and to bank accounts in Nigeria linked to an automobile company he controlled.

In Ndubizu’s tax returns for the years 2014 to 2017, his income was under-declared and he falsely stated that he had no financial interest or signatory authority for foreign bank accounts. He failed to declare approximately $3.28 million in pharmacy income, resulting in tax evasion of approximately $1.25 million.

Each count of tax evasion is punishable by up to five years in prison and a fine of $250,000. Each count of filing a false tax return is punishable by up to three years in prison and a fine of $250,000.

Hastings, Minnesota: According to published reports, 37-year-old tax consultant Tania Fay Pryor was sentenced to six months in prison for tax evasion.

Pryor, who reportedly once owned five H&R Block franchises and a daycare center, must also pay restitution and serve five years’ probation.

Pryor was initially charged with 18 counts of tax-related violations between 2006 and 2008, and she owed more than $43,000 in unpaid taxes, reports said. In May of last year, she also pleaded guilty to four counts of failing to file a tax return or report income, and two other counts of failing to pay taxes.

She reportedly failed to file or pay taxes, including for her former employees, even though she deducted the money from their paychecks. According to state records cited, Pryor failed to file withholding returns or tax deposits for her tax preparation business for 2007 and 2008. A criminal complaint filed in a local district court says Pryor owes more than $7,500 in withholding taxes for that business for 2006.

Newark, New Jersey: Business owner Alain Rodrigues, 49, has admitted to evading taxes through a check cashing scheme.

Rodrigues owned and operated a construction business in Newark and Old Bridge, New Jersey. Starting in about 2017, he deposited a portion of his clients’ payments into a business bank account. He then converted the remainder into cash and money orders, which he deposited into a personal bank account or used to pay employees wages in cash.

Rodrigues reported on his corporate tax return only the portion of the company’s revenue that was deposited into the business bank account, and on his personal income tax return, he did not report as income the company’s revenue that was deposited directly into his personal bank account. The company also did not report the cash wages it paid to employees under his management, nor did it withhold or pay payroll taxes on those wages.

Rodrigues and his company paid $554,873 less in income taxes than they owed and failed to collect and remit over $793,139 in payroll taxes, totaling approximately $1.35 million.

Sentencing is scheduled for December 19. Each count of tax evasion and failure to collect and pay taxes carries a maximum of five years in prison and a $250,000 fine. As part of his guilty plea, Rodrigues has agreed to pay the government $1.35 million in restitution and file amended tax returns.

Pickerington, Ohio: Office manager Eric Moesle has pleaded guilty to failing to pay more than $750,000 in payroll taxes and failing to file tax returns.

From 2014 to 2020, Moesle was the office manager at Elemental Dental in Pataskala, Ohio, where he was responsible for payroll, accounting, and tax preparation. At Moesle’s direction, Elemental withheld Social Security, Medicare, and income taxes from employees’ wages but failed to pay those taxes to the IRS or file payroll tax returns. During that time, the company also failed to pay the employer’s share of those taxes.

In a 2022 interview with the IRS, Moesle lied that he was unaware that payroll taxes had not been paid and that Elemental’s payroll tax returns and W-2 forms had not been filed, and he falsely claimed that these omissions or failures were unintentional.

Moesle caused federal tax damage of $760,255.