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I’m delighted to report that Abby Croll, a Roth & Company Tax Manager, delivered twins yesterday, a boy and a girl. One compelling reason is that failure to file can draw unwanted attention from the IRS. That seems to be how it worked for an entrepreneur in Northwest Iowa, a Ms. An Eighth Circuit panel yesterday upheld her 33-month sentence on tax charges.
Agent Wright discovered that Fairchild and her husband had not filed income tax returns since 2004.Agent Wright obtained records from Fairchild’s two primary bank accounts dating back to January 1, 2005.These bank records showed that a number of large cashier’s checks had been deposited into her accounts.Specifically, there were 37 deposits of checks from David Karlen totaling $1,103,647.84.Fairchild’s accounts reflected another six checks totaling $50,000 from Paul Pietz deposited into two main accounts in 2008.Additionally, the returns did not identify any of Fairchild’s cash deposits during those years as income.
Agent Wright interviewed Fairchild about her tax returns on July 13, 2011.
During that interview, Fairchild explained “that she actually thought all of the money, that every single cashier’s check she received from Mr.
The bank records also showed $210,348.39 in total cash deposits from 2005 to 2008.
In July 2010, Fairchild and her husband filed joint income tax returns for 2005, 2006, 2007, and 2008, apparently unaware of the ongoing IRS investigation.
Fairchild, a professional adult entertainer, reported income in each of the respective years as $122,345; $120,000; $120,000; and $151,325.
The total income reported of $513,670 was far less than the $1,153,647.84 that Fairchild received from Karlen and Pietz during that same time span.