Randy Lynn White, of Lubbock, Texas, the sole trustee of the Frank F. McMordie Jr. Family Trust, pleaded guilty to tax evasion.
According to court records, White was the administrator of the McMordie family trust who’s only whose assets consisted primarily of a large ranch in the Texas Panhandle that produced mineral interests.
White received substantial benefits and income from the trust — a combination of fees paid to him for administration and money he took for personal use. However, according to court records, White took advantage of his control and paid himself excessive administrative fees and spent most of the trust’s money on his own extravagant personal expenditures such as:
- Making his mortgage payments
- Buying cars and motorcycles
- Buying diamond and gold jewelry
White attempted to conceal his extravagant expenditures by paying a relatively small amount of the trust’s income to the trust’s beneficiary, Frank F. McMordie III, who lived in Mexico. White admitted that as part of his tax evasion scheme, he disguised many of the funds he diverted from the trust’s bank account for his personal use by placing false business notations on the checks, claiming that they were business expenditures.
For this crime, White faces up to five years in prison and a fine of up to $250,000. As part of his plea agreement, he will pay $200,000 in restitution.
People like Randy Lynn White usually get caught through an audit.
If flagged, IRS revenue agents conduct a thorough examination of individual taxpayer’s financial records relating to their individual or business taxes. As I have said before, revenue agents are trained to look for clues that a taxpayer may be hiding something. While only 1.1% of taxpayers get audited, it’s in those audits that the IRS can find a gold mine.
IRS revenue agents’ are focused on decreasing the “tax gap” — the difference between reported tax revenue and collected tax revenue. In order to capture that lost revenue and close the gap, the IRS has increased collection rates to some of the highest levels in history
Don’t give the IRS a reason to closely “examine” your tax returns. Practice tax compliance and audit prevention above all.
However, if for some reason you find yourself facing an IRS or state tax audit, don’t go it alone. Your best defense is to hire a qualified tax audit specialists for audit representation. These IRS problem solvers will handle your case from soup to nuts on your behalf. This tax audit team understands the entire audit process and can devise a tax relief action plan on your behalf to help resolve your tax problems for good.
