Tax Evasion Can Happen by Accident, but Don’t Expect Compassion That’s over half the original amount just in fines! And let’s not forget, tax evaders who do so willfully can expect the possibility of real jail time. Tack on the addition of penalties and fees, and his debt jumps by roughly $350,000 to nearly $1 million. Plus, the IRS performs random audits on businesses known to collect a lot of cash (think restaurants, grocery stores and retail outlets).Īccording to authorities, Hankerson technically stole $650,000 by pocketing profits without passing on the proper sales tax to the state of Georgia. Because of this, they pay extra attention to a few tax evasion indicators, including questionable tax filings, possessions (like homes and cars) that don’t match reported income, tips from employees and customers on toll-free reporting lines and a large number of suspicious tax returns from the same preparer. Collect cash only, don’t give out receipts, sell things or offer services “under the table.” How will anyone know? Trust me, they will.īoth federal and state tax agencies want the money they feel is owed to them. Sales tax evasion seems like a pretty easy way to avoid paying taxes undetected. So what exactly can we learn from Hankerson’s actions? At present, the restaurants have closed their doors until further notice. They claim that Hankerson owes nearly $1 million dollars in sales tax, plus penalties and fees. Recently, authorities from Georgia’s Department of Revenue raided the three Atlanta restaurant locations, armed with search warrants. By now, most of you have skimmed the CNN article on Shanga Hankerson, the son of Gladys Knight and owner of Gladys Knight’s Signature Chicken & Waffles.
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