In a recent development, a former Utah movie producer by the name of Paul Kenneth Cromar has been charged with tax evasion and obstructing the Internal Revenue Service (IRS). According to the indictment, Cromar allegedly failed to file any federal income tax returns or make any tax payments from 1999 to 2005. After an IRS audit in 2005, he was assessed with over $700,000 in taxes, interest, and penalties. When Cromar failed to make any payments, a federal judge ordered the sale of his home to satisfy his tax debt. The indictment accuses Cromar of attempting to stop the sale by filing false documents, intimidating potential buyers, and even unlawfully breaking into the home. If convicted, Cromar could face a maximum penalty of five years in prison for tax evasion, three years for obstructing the IRS, and two years for forcibly retaking seized property. The case is currently being investigated by the IRS-Criminal Investigation and the Treasury Inspector General for Tax Administration.
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Former Utah Movie Producer Charged with Tax Evasion and Obstructing IRS
Background
Utah man charged with tax evasion and obstructing IRS
The United States Department of Justice has recently charged Paul Kenneth Cromar, a former movie producer hailing from Utah, with tax evasion and obstructing the Internal Revenue Service (IRS). Cromar allegedly failed to file federal income tax returns and obstructed IRS efforts to collect the outstanding tax debt.
Indictment unsealed
An indictment against Cromar was unsealed, revealing the details of the charges brought against him. The indictment outlines his alleged criminal conduct, including tax evasion, obstruction of the IRS, and illegally retaking seized property.
Details of the charges
According to the indictment, Cromar, who owned a home in Cedar Hills, Utah, and operated Blue Moon Productions, LLC, reportedly failed to file any federal income tax returns between 1999 and 2005. In 2005, the IRS conducted an audit and assessed Cromar with a staggering $703,266.96 in taxes, interest, and penalties.
Cromar’s alleged criminal conduct
Despite the IRS audit and assessment, Cromar purportedly failed to make any payments toward his outstanding tax debt. As a result, a federal judge ordered the auction of Cromar’s home to satisfy the debt. The indictment accuses Cromar of attempting to obstruct the sale by filing bogus documents and intimidating potential buyers or investors. Additionally, he is alleged to have harassed IRS personnel with frivolous lawsuits.
Cromar’s Tax Evasion
Allegations against Paul Kenneth Cromar
The allegations against Paul Kenneth Cromar suggest that he knowingly and willfully evaded his federal income tax obligations. By failing to file any tax returns from 1999 to 2005, Cromar allegedly sought to evade his tax liability and conceal his true income from the IRS.
Failure to file federal income tax returns
During the seven-year period mentioned, Cromar allegedly chose not to file any federal income tax returns, thus evading his tax obligations. This failure to comply with federal tax laws is a serious offense and can result in criminal charges.
IRS audit and assessment of outstanding tax debt
In 2005, the IRS conducted an audit of Cromar’s finances and determined that he owed $703,266.96 in taxes, interest, and penalties. The audit revealed Cromar’s attempt to evade his tax liability for the years in question.
Federal judge orders auction of Cromar’s home to pay off debt
Due to Cromar’s failure to make any payments toward his outstanding tax debt, a federal judge ordered the auction of Cromar’s home to satisfy the debt. This action demonstrates the seriousness of Cromar’s tax evasion and the consequences he now faces.
Obstruction of the IRS
Cromar’s attempts to stop the sale of his home
According to the indictment, Cromar made various attempts to obstruct the sale of his home. He allegedly filed bogus documents, including a false promissory note, with the IRS in an effort to halt the sale and prevent the collection of his outstanding tax debt.
Filing bogus documents with the IRS
Cromar’s alleged filing of false documents with the IRS can be seen as an attempt to deceive and mislead the government. Such actions can obstruct the IRS’s ability to accurately assess and collect taxes owed.
Intimidation of potential purchasers or investors
In addition to filing bogus documents, Cromar purportedly intimidated potential buyers or investors of his home. These actions were likely aimed at dissuading interested parties from participating in the sale, thereby further obstructing the IRS’s efforts.
Harassment of IRS personnel with frivolous lawsuits
The indictment also accuses Cromar of harassing IRS personnel by filing frivolous lawsuits against them personally. This harassment not only targets individuals working for the IRS but also further hampers their ability to carry out their duties effectively.
Retaking Seized Property
Cromar’s break-in and unlawful occupation of his home
According to the indictment, Cromar took drastic measures to reclaim his home that had been seized by the government. He allegedly broke into the property and unlawfully occupied it for several months.
Fortification of the home with weapons and barricades
During his unlawful occupation, Cromar reportedly fortified the home with weapons, sandbags, and wooden boards strategically placed throughout the house. These actions aimed to prevent lawful authorities from retaking the property.
Total tax loss caused to the IRS
As a result of Cromar’s alleged criminal conduct, the IRS suffered a total tax loss of $1,174,201.91. This significant loss highlights the severity of his actions and their impact on the federal government’s ability to collect the taxes owed.
Potential Penalties
Maximum penalties for tax evasion, obstruction of the IRS, and retaking seized property
If convicted, Paul Kenneth Cromar faces severe penalties for his alleged crimes. The maximum penalties include up to five years in prison for tax evasion, up to three years in prison for corruptly endeavoring to obstruct the IRS, and up to two years in prison for forcibly retaking seized property.
Sentencing considerations
In determining the appropriate sentence, a federal district court judge will consider various factors, including the U.S. Sentencing Guidelines and other statutory requirements. These considerations aim to ensure that the punishment fits the severity of the crimes committed.
Determining any sentence
Ultimately, the decision regarding Cromar’s sentence will lie with the federal district court judge overseeing the case. The judge will carefully assess the evidence, the nature of the offenses, and any mitigating or aggravating factors before reaching a decision.
Investigation and Apprehension
IRS-Criminal Investigation and TIGTA involvement
The investigation into Paul Kenneth Cromar’s alleged crimes involved the collaboration of multiple agencies, including the IRS-Criminal Investigation and the Treasury Inspector General for Tax Administration (TIGTA). These agencies played a crucial role in uncovering evidence and building a case against Cromar.
Assistance from the FBI in locating and apprehending Cromar
The Federal Bureau of Investigation (FBI) also played a significant role in the case by assisting in locating and apprehending Cromar. As a fugitive from justice since August 2022, Cromar’s capture was a crucial step in bringing him to trial.
Cromar’s status as a fugitive since August 2022
Cromar’s status as a fugitive since August 2022 indicates the lengths he went to avoid facing charges and prosecution. However, law enforcement agencies worked diligently to locate and apprehend him, ensuring that he will now face the consequences of his alleged crimes.
Prosecution of the Case
Trial attorneys from the Tax Division and the District of Utah
The prosecution of Paul Kenneth Cromar’s case involves trial attorneys from both the Tax Division and the District of Utah. These highly trained professionals will present the government’s case against Cromar, presenting evidence and arguing for his conviction.
Presenting the case against Cromar
The trial attorneys will meticulously present the case against Cromar, drawing upon the evidence gathered during the investigation. They will aim to demonstrate his guilt beyond a reasonable doubt, in accordance with the legal standards required for a conviction.
Indictment as an allegation and presumption of innocence
It is crucial to remember that an indictment is merely an allegation and does not constitute proof of guilt. As with any criminal case, Paul Kenneth Cromar is presumed innocent until proven guilty beyond a reasonable doubt in a court of law. The indictment serves as the starting point for the legal process and the determination of Cromar’s guilt or innocence.
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Related Content
Similar cases of tax evasion and employment tax schemes
Paul Kenneth Cromar’s case is not an isolated incident of tax evasion and criminal conduct. Similar cases have been previously prosecuted, indicating that the government takes such offenses seriously.
Owner of Oregon Payroll Services Company pleads guilty to employment tax scheme
In a related case, the owner of an Oregon Payroll Services Company recently pleaded guilty to an employment tax scheme. This case serves as another example of the government’s commitment to prosecuting individuals who attempt to evade paying employment taxes.
Kansas owner of construction firms pleads guilty to employment tax scheme
Similarly, the owner of construction firms in Kansas pleaded guilty to an employment tax scheme. The prosecution of these cases underscores the government’s dedication to enforcing tax laws and ensuring that individuals and businesses fulfill their tax obligations.
Owner of Kansas Metal Company pleads guilty to employment tax scheme
In yet another case involving an employment tax scheme, the owner of a Kansas Metal Company pleaded guilty. These cases collectively highlight the importance of compliance with tax laws and the repercussions faced by those who engage in fraudulent conduct.
Conclusion
Announcement of indictment and pending trial
The recent announcement of the indictment against Paul Kenneth Cromar marks a significant step in the legal process. The charges of tax evasion, obstruction of the IRS, and retaking seized property are serious offenses that will be vigorously prosecuted.
Reminder of presumption of innocence
It is essential to remember that Paul Kenneth Cromar, like any defendant, is presumed innocent until proven guilty beyond a reasonable doubt in a court of law. The legal process will determine his guilt or innocence based on the evidence presented during trial.
Updates on the case and any developments
As the case against Cromar progresses, updates and developments will be closely monitored. The outcome of this trial will serve as a reminder of the consequences individuals face when they engage in tax evasion and obstruct the IRS.
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