On Friday, Acting Deputy Assistant Attorney General Stuart M. Goldberg announced that a Fort Lauderdale, Florida resident had been sentenced to 12 months and a day in prison for tax evasion. Documents filed in the case conclude that 53-year-old Thomas Daly evaded paying taxes on more than $1.5 million in income from 2002 to 2015.
Daly failed to file an income tax return since 2002, besides for the 2007 tax year. Daly worked with a Fort Lauderdale company to sell hurricane-resistant windows to homeowners. In August of 2009, the Internal Revenue Service took action against the defendant. At this time, the IRS notified Daly of its intention to levy his wages.
This resulted in Daly creating his own business, South Florida Home Marketing Inc., and changing his employment status to an independent contractor to hide his earnings. Daly named himself as director and opened a business bank account in SFHM’s name. This allowed him to elude the IRS’s attempt to levy his wages.
From August 2009 to April 2017, Daly used SFHM’s bank account for personal reasons. For instance, he used the money for his girlfriend’s cosmetic surgery, a boat, jewelry, rent, and international travel. The defendant also misclassified personal expenses as businesses expenses on the memo line of the checks used to draw money for the SFHM bank account.
He did so in an attempt to claim these expenses as business expense deductions and to evade additional income taxes. In total, Daly admitted that his actions led to tax losses of more than $351,241. Daly has been sentenced to 12 months and one day in prison along with two years of supervised release. He has also been ordered to pay $459,481.03 in restitution to the IRS.