Pleading guilty, Paul Pogue of McKinney, Texas, admitted that he under reported his income by nearly 1/2 million dollars.
Pogue, stated, in court, that he was employed as a consultant for a construction company, acknowledged in court that he stated on his 2003 tax return that he only had taxable income of $4,594,052 for that year, when he knew he had taxable income of $5,588,249.70. Pogue admitted in court documents that he also knowingly understated his taxable income on his 2004 and 2005 individual tax returns. Pogue admitted reporting only $3,111,715 in taxable income for 2004, when he knew his taxable income was $3,686,784.40, and reporting only $2,908,235 in taxable income for 2005, when he knew he actually had $3,030,684.70 in taxable income that year. Pogue acknowledged that the total tax loss resulting from his additional, unreported income was $473,680.53.
As you can imagine, failing to report income causes ire in the hallowed halls of the IRS. Pogue faces up to three years in prison and likely repayment of the tax on the income he admitted was under reported.
Comments were made which have since been retracted. I respect the poster’s decision to retract, however, I will offer some comments relative to the posters comments while removing them from this blog:
A comment was made that inferred that Mr. Pogue did not do business with the government: Doing business with the US Government has no impact on whether Mr. Pogue is guilty of tax evasion (or under reporting of taxable income). All US Citizens are expected to report all income from all sources unless specifically exempt from tax per the US tax code.
Mr. Pogue’s guilty plea has a direct impact on his family and if that plea puts him in federal prison, then one could conclude that his workers may be out of a job. The REALITY CHECK is that if ALL income had been reported, then we would not be discussing Mr. Pogue.
Only as a point of reference. While I am not proud of this, I spent time in federal prison for tax evasion. I, too, was a man of faith, in fact, I held the position of Director of Music in my church, deacon and was a community leader – sitting on several boards. It’s funny in life, but it seems that anyone can make mistakes and it would seem that if what Paul plead guilty to is true – then he made a mistake that will cost him.
As mentioned above the specific comments related to Mr. Pogue’s CPA have been removed. However, for anyone who pleads guilty of under reporting income, there will be questions raised as to whether the accountant was complicit in the evasion. Notice, several of my blog entries reflect tax preparers being prosecuted for willful failure to properly report a clients income. In this case, if Mr. Pogue was providing inaccurate information to his CPA, that would exonerate the accounting firm. If not, well???
Now…with what little I know about the federal system, if his CPA was guilty of a tax crime, then he would be a bigger target than Paul. I am reasonably certain that if the government feels that Paul’s CPA is somehow complicit they are looking that way. I wonder, however, why the finger is being pointed at the CPA? What did the CPA advise Paul that would have caused him (Mr. Pogue) to plead guilty to nearly 1/2 million of under reported income? This is the part that is confusing.
Two comments: (1) Paul is not being put on trial. He avoided that by pleading guilty. (2) Regardless of his character or kindness, Paul plead GUILTY. And, unless he is not, one fact remains – HE PLEAD GUILTY. Guilt happens to kind men, men with character, men who otherwise by their actions deserve better.
EVERY CHOICE HAS A CONSEQUENCE. It would seem that Paul made a choice that violated federal law – admitted it – and now will face the consequence. For his sake and that of his family I hope he has a great attorney who can call upon the compassion of the court to recognize all that Mr. Higgins has stated and seek a minimal sentence for Mr. Pogue.
REALITY CHECK – The federal government has one method that is quite effective to encourage folks to obey the tax laws … FEAR. Mr. Pogue likely reduced his sentence by making it easy for the government to convict. But, his guilty plea and sentencing to follow make it yet another example of how the system works. If you don’t file, don’t pay or don’t work to accurately reflect your taxable income – expect a nasty outcome.