The United States Tax Court has held that convicted ex-Maryland pharmacist Steven Sodipo liable for over $190,000 in back taxes, penalties, and additions. According to the final determinations from an IRS audit triggered by his criminal convictions, Sodipo established various business entities in efforts to evade his tax liabilities from 2005 to 2007. Additionally, the IRS Revenue Agent assigned to the case performed a deposit analysis of Sodipo’s bank statements and found over a quarter of a million dollars of unreported income for those years. In response to the IRS’s determinations, Sodipo petitioned the Tax Court from prison on the grounds that the audit results were “arbitrary” and unenforceable because of the Revenue Agent’s discretionary decision to exclude certain deposits from the analysis. Unfortunately for Mr. Sodipo, the Tax Court did not agree and ruled in favor of the IRS. U.S. Tax Court Judge, Carolyn P. Chiechi, stated Sodipo had “signatory authority and dominion and control” over the businesses he used as tax shelters. Furthermore, Judge Chiechi ruled the IRS proved through a preponderance of evidence that Sodipo was guilty of tax evasion for the years in dispute and thus responsible for fraud and failure to pay penalties in the amount of $67,664 in addition to the outstanding tax liabilities as determined by the IRS audit procedure. If you know or suspect that you are or will be the subject of an IRS audit or criminal investigation, contact the experienced tax controversy attorney at Daniel Rosefelt & Associates, LLC, Attorney & CPA for help. Call (301) 656-8525 to discuss your legal options.