Scottsdale Flipper Found Guilty on Three Counts of Tax Evasion

[Account Closed]

At Trial, held Sept 2022, it was determined that he was guilty of Tax Evasion

According to the report, for the Tax Years 2014, 2015, 2016 he

1. Failed to accurately report his income between calendar years 2014 and 2016
2. He also received payments in cash from customers that he failed to report
3. He reported a loss of $38,000 in 2016 despite, in the same year, purchasing a primary residence
4. He was “asking clients to make payments with checks in his name and depositing them into personal bank accounts instead of business accounts.”

Sentencing is scheduled for December 5, 2022

What is interesting is that he was indicted in September of 2021 for tax years 5, 6 & 7 years earlier. Normally the IRS looks back only 3 years, unless they suspect fraud. The case ran about a year.

Something tipped off the IRS.

It’s very hard to know what started the investigation but it could have been as simple as someone feeling they got cheated on a deal and called a lawyer or a discontented employee, an ex girlfriend or ex spouse, etc.

The point is, he was breaking the law

& I think it’s unlikely the IRS drew his name out of a hat.

So, keep your transactions clean, document everything, use disclosures and be sure to report all of your income, don’t take deductions unless they are lawful & you can prove them. Get and give receipts if using cash.