If You Owe It, and You Have It, You Must Pay It

An independent contractor from Tulsa, Ok, John Petrig, pled guilty in Federal Court to one count of tax evasion.

Petrig worked installing ATM machines inside casinos.  His company paid him a commission based on the number of transactions executed at the ATMs.  On his 2015 tax return, Petrig showed an income of $394,317 but failed to pay the $110,372 in taxes owed.

In 2012, the Internal Revenue Service sent a notice of levy to Petrig’s employer, stating that any commissions earned be sent to the IRS to pay his tax debt.  In turn, Petrig sent a letter to his employer directing that all future commissions be paid to a fictitious corporation he set up.

U.S. Attorney Trent Shores states, “The federal income tax system is based upon the compliance of the taxpaying citizens of this nation.  When an individual, such as Mr. Petrig, decides to shirk his responsibility to pay what he owes, then other law-abiding citizens end up shouldering the burden. Mr. Petrig’s criminal acts cost taxpayers not only the loss of unpaid taxes, but also the additional expense for investigating and prosecuting his criminal behavior.”

Petrig faces a maximum sentence of 5 years prison time, a fine up to $250,000, or both, and up to three years supervised release.