Wednesday, October 2, 2019

N.C. Doctor Sentenced for Tax Evasion (10/2/19)

One of the downsides of paying too much attention to Federal Tax Crimes is to see people who abuse the privileges that they have received in life.  Here is a case of a doctor who had a privileged position.  Certainly, he had a good education (he did get in and graduate from medical school) and was ahead, financially and in status, of most Americans.

This doctor, Dr. David Russell, was convicted and sentenced to prison for tax evasion.  He got a rather light slap on the wrist (sentenced to 12 months and a day, so that he will get significantly less than 12 months with the good time credit).  I just wonder if the minority mechanic down at Joe's Body Shop who did roughly equivalent things would have gotten such a lenient sentence.  I won't know that, because it is a counterfactual.

The DOJ Press Release is here, and the key excerpt is:
According to documents and information provided to the court, from May 2012 to December 2015, Dr. David Russell, 66, took several actions to evade payment of federal income taxes, interest, and penalties he accrued over six previous tax years. Russell ignored a duly-issued Internal Revenue Service (IRS) summons to appear before an IRS collections officer with his pertinent financial records.  After the IRS sought and received a court order compelling Russell to comply with the summons, he provided minimal information and omitted records related to any financial accounts and assets he may have had. Russell also hid his assets from the IRS by depositing his paychecks on a reloadable debit card and having wages issued in the name of a company he controlled rather than directly to himself.  He also used a business to pay personal expenses.  In addition to evading the payment of these taxes, Dr. Russell failed to timely pay the taxes due for the years 2013 through 2015.
JAT Comment:

1. None other than the introduction.

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