Fraudulent Operation

53449333 - doctor's scrub top with stethoscope and one hundred dollar bill

Business owners are responsible for paying a variety of taxes for each employee. This is usually done over four installments during the tax year. An article in the Times of Northwest Indiana reports that an ear, nose and throat surgeon collected the appropriate taxes from his employees’ paychecks; however, he neglected to pay employment taxes to the Internal Revenue Service (IRS). (They’ll never notice.)

The story states that the doctor did not file his quarterly employment tax returns for 11 tax quarters. Over that period of time, he collected nearly $64,000 in federal income and employment taxes from his employees.

The 56-year-old doctor pleaded guilty to one count of failing to account for, collect and pay employment taxes. He was sentenced to one year and a day in prison and was ordered to pay more than $541,000 in restitution to the IRS.

The article doesn’t state the doctor’s motive for neglecting to file and pay the employment taxes. We can only speculate why he turned to crime to supplement his income. (Maybe it was a light flu season?) Thanks to the IRS Criminal Investigation Division, this fraudulent operation has been shut down.

Source: Today’s ”Fraud of the Day” is based on an article titled, ”S’ville Surgeon Sentenced to Year in Prison for Tax Fraud,” written by Jim Masters and published in the Times of Northwest Indiana on April 11, 2014.

HAMMOND – A Schererville doctor has received a year and a day in prison for failing to collect and pay employment taxes to the federal government, the U.S. Department of Justice announced Friday.

Ronald Eugene Jamerson, 56, also was ordered to pay $541,083 in restitution to the Internal Revenue Service, which represents the total tax loss owed for all tax periods from 2003 through 2008.

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Larry Benson is currently the Director of Strategic Alliances for Revenue Discovery and Recovery at LexisNexis Risk Solutions. In this role, Benson is responsible for developing partnerships for the tax and revenue and child support enforcement verticals. He focuses on embedded companies that have a need for third-party analytics to enhance their current offerings.