Don’t File a Tax Return, Go to Jail? It Could Happen to This Police Commissioner. An SFS Tax Problem Solutions Blog. 

Baltimore Police Commissioner Darryl De Sousa is facing up to three years of jail time and a $75,000 sentence for failing to file federal tax returns in 2013, 2014 and 2015.

The average (and even not-so-average person) would be shaking in his or her shoes at the thought of the IRS coming after them with criminal charges.

So is this a rare occurrence?

According to the IRS’s website, there are approximately 3,000 criminal prosecutions a year. It does not state how many of these cases are for tax fraud, tax evasion or failure to file.

When you consider that the IRS receives approximately 150 million individual returns a year, it is a very low number (about 0.002% of all returns filed).

Of course, that’s no consultation if you are one of the 3,000 people whom the IRS prosecutes.

The life-ruining effects of being prosecuted by the IRS

In De Sousa’s case, it has cost him his career.

De Sousa was a 30-year veteran of the police force. After the charges came to light, he was suspended from his position, only to resign a few days later. He had just been appointed commissioner in January.

At his tax hearing on Monday, May 21, De Sousa agreed to surrender his firearms and passport. He is currently free while awaiting trial. No court date has been set yet.

For his part, he said in a statement that while he did not file returns, he did have taxes withheld from his paycheck. He also filed a return in 2016 and has filed for an extension in 2017.

He also said “I fully admit to failing to file my personal federal and state taxes for 2013, 2014 and 2015. While there is no excuse for my failure to fulfill my obligations as a citizen and public official, my only explanation is that I failed to sufficiently prioritize my personal affairs.”

What can we learn from this?

As for De Sousa, we can hope for that he was eligible for a refund for each of those three years he didn’t file a tax return. There is no penalty for not filing if the government owes you money. You should still file a return anyway. Otherwise, you can’t claim the refund.

As reported by the Baltimore Sun, the IRS issued subpoenas for De Sousa’s pay and related information. This includes secondary jobs, travel and internal affairs files – from the last decade.

Many people don’t realize that anyone who pays you (even if you are an independent contractor) must let the IRS know they have done so. And in a timely manner.

The IRS matches what they receive from employers (and banks, etc.) against your tax return.

And obviously, as in De Sousa’s case, they can subpoena whatever they don’t already have.

Don’t let this happen to you

If you, like De Sousa, haven’t filed a tax return for any year, you should contact a tax professional right away.

It’s so much better if you take steps toward fixing your situation, rather than letting the IRS come to you.

At SFS, we have 35 years of experience helping people just like you with their taxes. CEO Jeffrey Schneider is an Enrolled Agent, Certified Tax Resolution Specialist, and NTPI Fellow. He is authorized to represent clients at all levels of the IRS.

Call us at (772) 337-1040 for an appointment or no-obligation consultation today.
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Jeffrey Schneider, EA, CTRS, NTPI Fellow has the knowledge and expertise to help you reach a favorable outcome with the IRS. He is the head honcho at SFS Tax & Accounting Services as well as the Enrolled Agent and Certified Tax Resolution Specialist for SFS Tax Problem Solutions.
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Now What? I Got A Tax Notice From The IRS. Help! Defining and deconstructing the scary and confusing letters that land in your mailbox. Jeff defines and deconstructs the scary and confusing letters in a fashion that mixes attention to detail with humor and an intricate clarification of what is what in the world of the IRS.

The book is available in paperback and ebook on https://Amazon.com
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