IRS – Source: 7713Photography / Getty
Michigan man receives three years in prison after failing to disclose millions in drug money to the Internal Revenue Service.
It’s officially tax season and as you are preparing your taxes always remember to report ALL of your income and we mean all of it. Failure to disclose income can have major consequences such as fines and even jail time. According to Fox 2 Detroit, one man has learned the hard way that even profits from drug money should be included on your tax returns to the IRS.
The Department of Justice alleges Matthew D. Adams was selling illegal substances from 2008 until 2017 to Individual A. Furthermore, Individual A allegedly used stolen money from their company to cover the cost. To make it worse Adams allegedly made the payments look like legitimate services were rendered by his company MDA Property Services.
All this hustling went down and none of it was reported to the Internal Revenue Service.
The downfall began in 2017 when Adam and his company were audited. During the audit he did a terrible job trying to cover his illegal tracks. Adams alleged that 90% of the money was for legitimate work when the audit revealed it was only 3% for legitimate services. Also, Adams used the money on real estate, cars, gambling, trips, and surprisingly court-ordered child support.
In the end, Adams received three years in prison for obstructing the IRS and his poorly orchestrated money laundering scheme. On top of that, he now owes $3,354,93 in restitution to the IRS.
