The Tax Times: 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.

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