bookkeeping

Millionaire: Medicaid and Tax-Evader

Accurate and thorough bookkeeping is necessary for billionaires and your average taxpayer alike. Read on for a recent story on the consequences of tax evasion.

Medicaid Theft Plus Tax Evasion = Jail

Jeffrey Scott Allen, a Missouri businessman, pleaded guilty to tax evasion for underreporting his income from 2012 to 2017.

Allen’s business provides installation services for satellite-based Internet and television, and he contracts labor with five different contractors. He claims an annual profit of 2.1 million dollars and takes a $6,000 monthly draw from the company.

To avoid paying taxes, Allen grossly underreported his net income from the business and paid most of his family’s expenses through the company. He lowered his taxable income by so much that he could qualify for federal benefits for his family, including $15,856 in Medicaid for three of his children, $4,392 in free and reduced school lunches, and $35,453 in federal student aid under the Pell Grant program.

A judge sentenced Allen to two years in prison without the possibility of parole. He paid $758,517 dollars in restitution. Allen also paid back federal and state agencies for the services received from Medicaid, the school lunch program, and the Pell Grant.

Expert Bookkeeping Services

We at Palma Financial are experts in IRS tax problem resolution and help taxpayers with their problems every day. There is always an answer, so give us a call! 925-307-5454 or click here to set up your appointment today.