Many celebrities use creative accounting techniques in order to avoid paying too much to the IRS, but most of them are legal. On occasion, one of them gets into trouble because they "colored outside the lines" and end up facing charges for tax evasion. One such celebrity, reality TV star Mike Sorrentino, recently began an eight-month prison sentence arising out of such a charge. Massachusetts residents may avoid the same fate by understanding what he did.
What did Sorrentino do wrong? In 2011, he owed a certain amount of taxes, and the government alleged that he failed to pay the full amount due, but that alone does not necessarily sound like tax evasion. Right? Many people, even some here in Massachusetts cannot pay what they owe the IRS. Well, it is not that simple.
For some reason, Sorrentino believed that it would be okay to make numerous $10,000 transfers to hide income from the IRS. After the allegations surfaced, he eventually entered a guilty plea in federal court to one count of tax evasion. In addition to his sentence, Sorrentino also owes approximately $123,000 in restitution. Moving assets in this manner tends to attract attention, along with federal charges.
Any Massachusetts resident who faces charges of tax evasion does not necessarily need to enter a plea as Sorrentino did unless it would provide the best possible outcome to the situation. Making that determination would require an investigation into the alleged circumstances, a review of the government's evidence and a review of contact with investigators to ensure that no constitutional rights were violated. With all of this information in hand, all potential legal options may then be evaluated.