TAX NEWS - June 2010
Ohio Tax: Orange Village lawyer charged with tax evasion from 2000
Share Northern District of Ohio U.S. Attorney Steven M. Dettelbach and Assistant U.S. Attorney John Sammon worked on the case against Toohig.
The information alleges Toohig attempted to evade payment of $184,964 in income taxes due in 2000.
It further alleges he concealed his true income and assets from the Internal Revenue Service by concealing the true profit of his law practice by paying substantial personal expenses through it and falsely claiming them as legitimate business expenses. He also structured deposits and withdrawals from both business and personal back accounts to avoid currency reporting requirements, withdrew currency extensively from bank accounts to conceal large personal expenditures and provided false financial information to the IRS in October 2004.
According to Sammon, Toohig tried to settle his debts in 2004 when he provided false information to the IRS.
IRS Criminal Investigation Special Agent Frank Brown said situations like this happen all the time and there are a number of different ways to evade paying taxes.
"We (the IRS) can't really prevent evasion," Brown said. "Everyone has their responsibility to file and pay their taxes."
Sammon said Toohig's court date is scheduled for June 22 before Judge Kathleen O'Malley.
He said Toohig's sentence could be probation of up to a year or a year-and-a-half in prison, if he is found guilty.
"When he filed his return, he didn't pay what was necessary and he did get notices," Sammon said. "We do anticipate that he will likely plead guilty."
An information is only a charge and is not evidence of guilt.
Toohig also was involved in a 2007 investigation about a theft of up to $10 million from the Colorado Department of Revenue. He was arrested May 1, 2007, but no charges were filed against him and he was released on a $10,000 bond.
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