Gary D. Primm, Jr., the owner of an auto warranty company in St. Charles, was found guilty in October 2021 of two counts of tax evasion and one count of failure to file an income tax return. He was recently sentenced to three years in prison.
Did not file an Income Tax Return?
According to FOX2 News, Primm did not file an income tax return for his business United Auto Defense, LLC, which had taxable income exceeding $620,000 in 2014. He generated more than $1 million in income from his business between 2014 and 2015 without paying any personal income taxes.
The press release stated that Primm transferred United Auto Defense funds to a nominee bank account rather than his personal bank account and filed fictitious IRS papers in an attempt to avoid having to pay tax obligations. Afterward, he used money from the nominee bank account to cover costs for his personal life.
IRS-Criminal Investigation Special Agent in Charge Tyler Hatcher said that to seek to avoid paying taxes on his income on purpose was a violation of the commitment they all have to pay their fair share of taxes, which Primm knew about and planned to violate.
As per the report, this case was investigated by the Internal Revenue Service’s Criminal Investigation Division. The action was handled by Assistant United States Attorneys Kyle T. Bateman and John Ware on behalf of the United States Attorney’s Office.
What is Tax Evasion?
According to Cornell Law School, illegal methods are employed in tax evasion. To get around paying taxes, people and businesses often fabricate their revenue and then hide it from the Internal Revenue Service. Underreporting income, exaggerating deductions, or hiding money and interest entirely in offshore accounts are all forms of misrepresentation.
The U.S. Government estimates that tax evasion cost the government $345 billion in the fiscal year 2007.
Criminal charges may be brought against anyone who fails to record their actual personal income on their tax returns, which is a common practice among those who are involved in unlawful businesses.