When Unpaid Taxes Turn Criminal: Lessons for Business Owners from U.S. v. Brandon L. Aumiller

Most business owners who fall behind on their taxes assume they’re dealing with a “money problem,” not a crime. You might expect penalties, interest, and some tough conversations with the IRS—but not handcuffs. The federal case of U.S. v. Brandon L. Aumiller is a powerful reminder that what you do after you fall behind can be the difference between a civil tax debt and a criminal tax evasion charge.

A Business Owner, Unpaid Taxes, And Bad Decisions

Brandon Aumiller owned an insurance-related business. Like many entrepreneurs, he had years where his tax returns showed amounts due that he simply did not pay. Over time, those unpaid individual and payroll taxes added up to a substantial balance.

The IRS did what it always does in these situations:

·         Sent notices.

·         Assessed taxes and penalties.

·         Began collection efforts.

So far, this is a familiar story for many business owners. The turning point came not from the unpaid taxes themselves, but from how Aumiller responded once the IRS started chasing the balance.

Instead of working with the IRS to resolve the debt, he took steps that looked like an attempt to dodge payment:

·         Moving money in ways that made it harder for the IRS to see or reach.

·         Using accounts or property arrangements that hid his real control over assets.

·         Giving the IRS financial information that did not fully disclose what he owned.

Those choices became the basis for a criminal case. A jury convicted him of tax evasion, and he received a federal prison sentence. The appeals court later issued an opinion upholding the government’s view that his conduct went beyond “can’t pay” and crossed into “won’t pay, and trying to hide.”

Behavior Matters More Than The Balance

Every business owner should understand one crucial point:

Owing taxes is a civil issue. Actively trying to hide from the IRS can turn it into a criminal issue.

The law looks for affirmative acts—things you do—to decide whether you’re “evading” taxes. In practical terms, prosecutors are looking for behavior that shows you are trying to keep the IRS from collecting what you owe.

Common examples that raise red flags:

·         Moving funds into someone else’s name while still using the money.

·         Transferring property for little or no real value, just to get it out of sight.

·         Running business income through accounts that you don’t disclose.

·         Filling out IRS financial forms and “forgetting” to mention certain accounts or assets.

In Aumiller’s case, the government argued that his pattern of concealment and incomplete disclosures showed clear intent to block IRS collection. That intent, more than the dollar amount, is what made his situation criminal.

Three Mistakes That Turn A Tax Problem Into A Criminal Problem

If you’re a business owner under tax pressure, here are three specific mistakes from cases like Aumiller’s that you must avoid.

Mistake 1: Using “Nominee” Accounts Or Other People’s Names

If you move your business or personal funds into accounts held in the name of a spouse, child, friend, or shell entity, but you still control the money, the IRS may treat those accounts as yours.

Why this is dangerous:

·         It looks like you’re trying to put assets beyond the IRS’s reach.

·         It creates a paper trail showing intentional concealment.

·         It can be powerful evidence in a criminal case.

If the honest reason for the arrangement is anything other than “I don’t want the IRS to see my money,” you should talk to a professional before making that move.

Mistake 2: Lying Or “Omitting” On IRS Financial Forms

When the IRS is collecting, it may ask you to complete forms listing your income, bank accounts, real estate, vehicles, and other assets. These forms are used to decide whether you qualify for a payment plan or settlement.

If you:

·         Leave off a bank account.

·         Fail to mention your interest in a property.

·         Understate your income on purpose.

You’re not just “shading the truth”—you may be creating false statements that can support a criminal evasion charge. In Aumiller’s case, the government saw incomplete financial disclosures as part of the scheme to mislead the IRS.

Mistake 3: Letting Panic Drive Secretive Asset Moves

Fear is understandable. But panic-driven moves—selling property fast, moving money around suddenly, or creating new entities without a clear business purpose—can look like you’re scrambling to stay ahead of the IRS.

Signs you’re acting from panic, not from a plan:

·         You’re making big financial changes without written advice from a professional.

·         Your main goal is “keeping it away from the IRS,” not improving your business.

·         You’re avoiding or ignoring IRS mail instead of responding.

In hindsight, many criminal tax cases are built on a series of rushed, reactive decisions that looked like a deliberate scheme once the government connected the dots.

How To Deal With Tax Debt Safely

If you’re behind on taxes, you have options that don’t involve hiding or lying. The IRS may seem intimidating, but there are legitimate tools designed to help taxpayers get back on track.

These include:

·         Payment plans (installment agreements):
Monthly payments over time based on your ability to pay.

·         Offers in compromise:
Settlements where you pay less than the full amount if you truly can’t pay it all.

·         Penalty relief:
In some situations, penalties can be reduced or removed.

·         Business restructuring done the right way:
Changes to how your business is organized or owned, made for real business reasons and fully disclosed, not as a cover story to hide assets.

All of these options require honesty and cooperation. They don’t work if your paperwork is incomplete or misleading.

Practical Steps If You’re Worried Right Now

If you’re reading about Aumiller’s case and feeling nervous about your own situation, here are sensible next steps:

1.       Stop any questionable asset moves.
If you’re moving money or property primarily to “keep it away from the IRS,” hit pause and get advice.

2.      Gather your documents.
Put together your IRS notices, tax returns, bank statements, and basic financials. This will help a professional quickly understand your position.

3.      Talk to a qualified tax professional—privately.
A confidential consultation with a tax attorney or experienced CPA can help you separate what is merely risky from what could be criminal.

4.      Be fully honest on any IRS forms you haven’t submitted yet.
If you’re unsure, have a professional help you complete them rather than leaving things out.

The Takeaway From U.S. v. Aumiller

U.S. v. Brandon L. Aumiller isn’t just about one business owner; it’s a warning about a pattern. Falling behind on taxes happens. What you do next determines whether you’re dealing with a tough financial problem or a life-changing criminal case.

If you’re a business owner with tax issues:

·         Don’t hide.

·         Don’t “play games” with accounts or ownership.

·         Don’t guess your way through IRS forms.

Do seek advice, do use lawful resolution options, and do treat your behavior today as something that could be judged years from now in a courtroom.

Have a Tax Problem?

     Contact the Tax Lawyers at

Marini & Associates, P.A. 

for a FREE Tax HELP Contact us at:
www.TaxAid.com or www.OVDPLaw.com
or Toll Free at 888 8TAXAID (888-882-9243)

Sources:

1.       https://writing.wisc.edu/handbook/writingblogpost/ 

2.      https://www.indeed.com/career-advice/career-development/how-to-write-blog-post    

3.      https://www.wpbeginner.com/wp-tutorials/how-to-write-a-great-blog-post-structure-examples/

4.      https://www.wix.com/blog/how-to-write-a-blog-post-with-examples

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13.   https://www2.ca3.uscourts.gov/recentop/week/recprec2day.htm   

14.   https://regtechtimes.com/the-brandon-aumiller-found-guilty-for-tax-evasion/          

15.    https://www.govinfo.gov/content/pkg/USCOURTS-pamd-1_22-cr-00417/pdf/USCOURTS-pamd-1_22-cr-00417-0.pdf      

16.   https://case-law.vlex.com/vid/u-s-v-brandon-895358806

17.    https://law.justia.com/cases/federal/district-courts/FSupp/434/1273/1416840/

18.   https://www.casemine.com/commentary/us/expanding-the-scope-of-bank-fraud:-insights-from-united-states-v.-brandon/view

19.   https://www2.ca3.uscourts.gov/opinarch/212742p.pdf

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23.   https://casetext.com/case/us-v-brandon

24.  https://www.govinfo.gov/app/details/USCOURTS-pamd-1_05-cr-00069

https://www2.ca3.uscourts.gov/opinarch/242942ppan.pdf

We’re honored to be nominated again for Best of Florida – Tax Lawyers and would truly appreciate your vote for Marini & Associates, P.A.

Our firm focuses on complex international tax planning, IRS audits, and tax controversy matters for clients in Florida and around the world.

Please vote here: guidetoflorida.com/miami/legal-services/marini--associates-pa

Thank you for your trust, your referrals, and your vote.

Sincerely,

Ronald A. Marini, Esq.

Marini & Associates, PA Traces its Roots Back to Arthur Andersen & Co. (AA&Co.)

For those of you who don't know what I did before opening up our International & Tax Litigation Boutique 33 years ago (1993-Present); I was with AA&Co. for 11 years prior to that, in their Miami, Florida office (1982-1992).     

While there I had the wonderful opportunity of learning my vocation from some of the best in the business like Ivan Fagan, the firm's Real Estate Syndication Expert and Larry Levine, the Miami Offices resident Tax Genius, not to mention my long-term mentor and colleague Bill Pruitt, who was Office Managing Partner during the years that I worked at AA&Co.

Since most of my clients where large multinationals, I had the opportunity over 11 years to learn some of the most advanced international planning techniques and then I had the opportunity to defend many of them before the IRS; which resulted in me being listed as 1 of 15 International Tax Specialist in AA&Co.’s Worldwide Directory and it also allowed me to teach annually at the firm's US Taxation of Multinational Activities in St. Charles, Illinois, along size such International Tax Giants as Andre Fogarasi, Richard Gordon, Diane Renfroe, and many, many, others Top International Tax Attorneys.   

One day in the mid-1980s, while I was looking out our Miami office"s windows on the 21st floor, it became readily apparent that Miami was rapidly becoming the International Cruise Capital of the world and as a man in his late 20s, I was determined to get a piece of it. So we start targeting and obtained numerous international cruise lines, as clients of the firm. As a result of defending numerous international cruise lines clients, during the IRS Cruise Industry Tax Audits in the late 1980s, I also became 1 of 5 International Shipping Specialist for AA&Co in the US.

During my time with AA&Co, Arthur Andersen’s South Florida practice held a dominant position over that of the other international accounting firms. 

Its three practice units, Tax - Audit & Consulting, were consistently among the most profitable within the firm (based on profit per professional). 

The South Florida Practice had the Largest Share of Publicly-Held Clients and, because of its High Quality Service, it rarely lost a Client. A few of the long-time clients of the South Florida practice that remained clients until they were sold, or Andersen ceased business, included: Blockbuster Entertainment, AutoNation, IVAX Corporation, The Wackenhut Corporation, Southeast Toyota, KOS Pharmaceuticals, Republic Services, Sunglass Hut International, Steifel Laboratories, Watsco Corporation. Not to mention the numerous large closely held corporations, rivaling in size and sales, the above-mentioned publicly traded companies.             

I left AA&Co on December 31, 1992 and 10 years later in June 2002, Andersen was found guilty of obstruction of justice for shredding documents relating to the audits of Enron Corporation.  Andersen was forced to surrender its licenses to practice and in June 2002 the South Florida practice was effectively ended.   

In May 2005, the Supreme Court of the United States unanimously reversed the conviction, however, it was too late for what had once been the most successful professional services firm in the world with 85,000 personnel and over $10 billion in revenue. 

While at Andersen, we professionals were constantly challenged to improved our skills. The network of Andersen alumni in South Florida is still strong even though the firm ceased business in 2002. Many alumni are among the business elite in their local communities.

1988

Me & Kevin Lockwood of AA&Co, on my Client Sea Escape's Vessel.

 

 

30 Years Latter - 2018

Me (Marini & Associates, PA),
Kevin Lockwood (Forshee & Lockwood PA (CPA's)) &
David W. Appel (Cherry Bekaert, (CPA's))

We 3 work in the same 10 person cubicle workspace at AA&Co in the 1980's.

 

 

When You Have an International Tax 

or IRS Tax Problem  

and Need Experience Tax Representation...

Robert Blumenfeld, Esq.,Ronald Marini, Esq. & Anita Friedlander, Esq.

 Contact the Tax Lawyers at 

Marini & Associates, P.A. 

 

 

for a FREE Tax Consultation

at: www.TaxAid.com or www.OVDPLaw.com or

Toll Free at 888-8TaxAid (888) 882-9243