Thomas Daly, Tax Evasion, Florida 2023

A ruthless tax evader has been brought to justice in South Florida. Thomas Daly, 53, was sentenced to 12 months and one day in prison for tax evasion, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Division’s Tax Division.

According to documents filed with the court, Thomas Daly evaded paying taxes on more than $1.5 million in income that he earned from 2002 to 2015. Except for the 2007 tax year, Daly has not filed an income tax return since 2002. He worked for a Fort Lauderdale company selling hurricane-resistant windows to residential homeowners in South Florida. In August 2009, the Internal Revenue Service (IRS) notified Daly of its intent to levy his wages because of his failure to pay taxes. To obstruct the IRS’s collection efforts, Daly established his own business, South Florida Home Marketing Inc. (SFHM), and changed his employment status from an employee to an independent contractor. Daly listed himself as the director of SFHM and opened a business bank account in its name. Due to Daly’s change in employment status, his employer paid SFHM directly and the IRS’s attempts to levy Daly’s wages were thwarted.

From approximately August 2009 through April 2017, Daly used SFHM’s bank account to pay for personal expenses, including rent, cigars, international travel, entertainment, his girlfriend’s cosmetic surgery, jewelry, and a boat. He also falsely classified numerous personal expenses as business expenses on the memo line of the checks drawn on the SFHM bank account. Daly admitted that he made these false entries with the intent to claim false business expense deductions and evade the assessment of his income taxes. Daly admitted that his actions caused a tax loss of more than $351,241.

In addition to the term of prison imposed, U.S. District Judge Kenneth A. Marra ordered Daly to serve two years of supervised release and to pay $459,481.03 in restitution to the IRS.

Acting Deputy Assistant Attorney General Goldberg commended special agents of IRS Criminal Investigation, who conducted the investigation, and Trial Attorneys Charles M. Edgar, Jr. and Michael C. Boteler of the Tax Division, who prosecuted the case with assistance from the U.S. Attorney’s Office for the Southern District of Florida.

The case serves as a stark reminder of the consequences of tax evasion. As the investigation revealed, Daly’s actions not only deprived the government of revenue, but also created a complex web of deceit and obstruction. This case should send a clear message to anyone considering similar actions: the IRS will not be thwarted, and tax evasion will not be tolerated.

Daly’s sentencing brings an end to a lengthy and complex investigation. The IRS’s efforts to levy Daly’s wages were ultimately foiled by his creative but ultimately unsuccessful attempts to evade detection.