IRS Claims He Hid Millions to Avoid Paying Nearly $2M in Taxes
Florida Businessman Faces Tax Evasion Charges
A Jacksonville businessman is facing serious legal trouble after a federal grand jury indicted him for tax evasion, failure to file tax returns, and failure to pay federal taxes. Phillip Mak, a self-employed businessman, allegedly earned $10.3 million from 2008 to 2020 but failed to pay nearly $2 million in taxes.
IRS: No Tax Returns, No Payments
According to the indictment, Mak did not file tax returns for most of the 12-year period. The IRS claims he owes significant back taxes, penalties, and interest for multiple tax years, including 2008, 2009, 2012-2015, and 2019-2020. Despite earning millions, he allegedly avoided his tax obligations by transferring large sums of money to his domestic partner’s bank accounts.
Allegations of Asset Hiding
The indictment states that Mak took further steps to hide his wealth from the IRS. After being questioned by IRS investigators, he allegedly:
- Transferred ownership of his home to his domestic partner’s trust.
- Created a nominee entity to disguise his financial transactions.
- Began depositing income into an account under the nominee entity’s name.
These alleged actions led to a total estimated tax loss of over $1.92 million.
Possible Penalties
If convicted, Mak faces significant legal consequences:
- Up to five years in prison for tax evasion.
- Up to one year in prison for each charge of failure to file a tax return and failure to pay taxes.
A federal judge will determine the sentence based on U.S. Sentencing Guidelines and other legal factors.
IRS Cracks Down on Tax Evasion
The IRS Criminal Investigation unit is handling the case, emphasizing its ongoing efforts to hold tax evaders accountable. The case is being prosecuted by Trial Attorneys Isaiah Boyd and Michael Jones of the Tax Division, along with Assistant U.S. Attorney John Cannizzaro for the Middle District of Florida.
The Legal Process Continues
At this stage, Mak has only been indicted, which means he is facing charges but has not yet been convicted. Under U.S. law, he is presumed innocent until proven guilty beyond a reasonable doubt in court.
What Business Owners Can Learn
This case serves as a cautionary tale for self-employed individuals and business owners. Failing to file tax returns or attempting to hide assets can lead to serious legal consequences. If you’re struggling with tax obligations, seeking professional help early can prevent costly penalties and potential criminal charges.
Source: The U.S. Department of Justice Office of Public Affairs website
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