DOJ nails Florida entrepreneur who hadn’t paid taxes in 10 years

Attorney General Jeff Sessions and the Department of Justice released the details of a case in which they snagged a Florida businessman who evaded taxes for more than a decade.  It’s another example of how Jeff Sessions is going after criminals both big and small in an effort to make America great again, and to bring honor back to an agency nearly destroyed by the Obama administration.

Thomas Daly, 53, of Fort Lauderdale, Florida, was sentenced to 12 months and one day in prison for tax evasion, according to Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division.

According to documents filed with the court, Mr. Daly failed to pay taxes on more than $1.5 million in income he earned for 2002 – 2015.  He diverted his income to pay for his girlfriend’s cosmetic surgery, jewelry, and international travel.

Records show that Mr. Daly, except in 2007, has not filed an income tax return since 2002.

His occupation was representing a Ft. Lauderdale company in the selling of hurricane-resistant windows to residential homeowners in south Florida. The IRS notified Daly of its intent to levy his wages in 2009.

Daly established his own business, South Florida Home Marketing Inc. (SFHM), in order to obstruct the IRS’ collection efforts, and he changed his status from employee to independent contractor. Daly established himself as director of SFHM and opened a business bank account. His employer paid SFHM directly and this thwarted the IRS’ attempts to levy his wages.

Besides his girlfriend’s expenses, he also used the SFHM bank account for personal rent, cigars, entertainment, and a boat. He falsely classified numerous personal expenses as business expenses with the intent of claiming false business expense deductions to evade the assessment on his income taxes. These false claims caused a tax loss of more than $351,241.

In addition to the term of prison imposed, U.S. District Judge Kenneth A. Marra ordered Daly to serve two years of supervised release and to pay $459,481.03 in restitution to the IRS.

Acting Deputy Assistant Attorney General Goldberg commended special agents of the IRS Criminal Investigation, who conducted the investigation, and trial attorneys Charles M. Edgar Jr. and Michael C. Boteler of the tax division, who prosecuted the case with assistance from the U.S. Attorney’s Office for the Southern District of Florida.

THE OFFICIAL RELEASE FROM THE DOJ:

Florida Salesman Sentenced to Prison for Tax Evasion

Diverted Income to Pay for Girlfriend’s Cosmetic Surgery, Jewelry, and International Travel

A Fort Lauderdale, Florida, resident was sentenced to 12 months and one day in prison for tax evasion, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division.

According to documents filed with the court, Thomas Daly, 53, evaded paying taxes on more than $1.5 million in income that he earned from 2002 to 2015. Except for the 2007 tax year, Daly has not filed an income tax return since 2002. He worked for a Fort Lauderdale company selling hurricane-resistant windows to residential homeowners in South Florida. In August 2009, the Internal Revenue Service (IRS) notified Daly of its intent to levy his wages because of his failure to pay taxes. To obstruct the IRS’s collection efforts, Daly established his own business, South Florida Home Marketing Inc. (SFHM), and changed his employment status from an employee to an independent contractor. Daly listed himself as the director of SFHM and opened a business bank account in its name. Due to Daly’s change in employment status, his employer paid SFHM directly and the IRS’s attempts to levy Daly’s wages were thwarted.

From approximately August 2009 through April 2017, Daly used SFHM’s bank account to pay for personal expenses, including rent, cigars, international travel, entertainment, his girlfriend’s cosmetic surgery, jewelry, and a boat. He also falsely classified numerous personal expenses as business expenses on the memo line of the checks drawn on the SFHM bank account. Daly admitted that he made these false entries with the intent to claim false business expense deductions and evade the assessment of his income taxes. Daly admitted that his actions caused a tax loss of more than $351,241.

 

In addition to the term of prison imposed, U.S. District Judge Kenneth A. Marra ordered Daly has been ordered to serve two years of supervised release and to pay $459,481.03 in restitution to the IRS.

Acting Deputy Assistant Attorney General Goldberg commended special agents of IRS Criminal Investigation, who conducted the investigation, and Trial Attorneys Charles M. Edgar, Jr. and Michael C. Boteler of the Tax Division, who prosecuted the case with assistance from the U.S. Attorney’s Office for the Southern District of Florida.

 

Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.

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