Strongsville Dentist Smith Sentenced to Four Years for Tax Evasion and Contempt

Douglas Smith, 68, of Strongsville, Ohio, faced a federal judge’s wrath as he was sentenced to four years in prison on Tuesday, February 7, 2023. The sentence, handed down by U.S. District Judge Dan Aaron Polster, came after Smith was convicted of attempted tax evasion in October 2022.

Smith’s misdeeds were far from trivial; he evaded paying income taxes for the years spanning 2004 to 2012. His methods included shuffling his assets into a trust, purchasing gold bars and coins, and filing for bankruptcy. The dental practitioner’s deceptive tactics didn’t stop there; between 2014 and 2017, he attempted to dodge taxes again by depositing paychecks into a separate holding trust.

The trial revealed that Smith has not filed an income tax return since 1992, racking up over $490,000 in back taxes and penalties with the IRS. He was notified of the IRS’s intent to collect these debts as early as April 2008 and March 2009. His deceitful scheme involved transferring assets into a trust he controlled, avoiding mortgage payments, and later transferring his Columbia Station home to another trust to avoid seizure.

In 2010, the IRS filed a tax lien against Smith and his trust. By 2011, the IRS threatened administrative seizure of his assets. In January 2012, federal authorities seized over $250,000 in cash and gold, only for Smith to attempt another transfer of his assets to evade further collection efforts.

Smith’s fraudulent behavior reached its climax when he filed for bankruptcy and made false statements about his assets to the IRS. The investigation into Smith was spearheaded by IRS Criminal Investigations (CI), and the prosecution was handled by Assistant U.S. Attorney Robert J. Patton.