Kirk Roberts, 49, of Salina, Kansas, owner of Wild, Wild West Inc., a Salina strip club, received three years federal probation and was ordered to pay $153,510 for filing false tax returns and underpaying his federal income taxes.
Roberts pleaded guilty to three counts of filing false income tax returns for tax years 2006, 2007 and 2008. In his plea, he admitted failing to report cash receipts totaling $537,942 and underpaying his federal income taxes by $153,510.
In a previous post about avoiding audit red flags, I warn that large cash transactions and deposits by a business often triggers an IRS audit – even if they are legitimate. Why? Because small business is the largest contributor to the annual tax gap; the amount of taxes owed but not collected, currently around $450 billion. Narrowing this financial gap is a government priority and cases like Kirk Robert’s only strengthen the IRS’ resolve to catch tax cheats. Because tax audits on the rise, taxpayers should focus on audit prevention first and foremost. Don’t give the IRS a reason to audit you or your business in the first place!
Hire Expert Audit Representation – If you have been contacted by the IRS for past business tax problems, received an IRS audit letter or are under audit don’t panic-tax relief is available. Nevertheless, you don’t want to face the IRS alone – you are out of your league and you will get creamed. The IRS audit process is lengthy and intimidating, and if your livelihood is at stake like in a business audit, you definitely want to make sure you have expert audit representation on your side.
Contact an expert tax attorney or certified tax audit specialist who can represent your case to the IRS on your behalf resolving your tax issues and helping keep your business up and running.