Georgia Towing Company Owners Found Guilty of Tax Fraud

March 12, 2015 — The Tax Relief and Health Care Act of 2006 set up an IRS Whistleblower Office so whistleblowers with information about tax fraud could notify the IRS and receive compensation. The Act allows tipsters to receive a percentage of 15 to 30 percent of the funds recouped by the IRS based on an informant’s unique information. To be eligible for compensation concerning a private individual’s IRS violations, the tax evader’s gross income must exceed $200,000 for every taxable year involved and the government’s recovery must top $2 million. To receive a reward for information about a corporation’s wrongdoing, no minimum recovery is required.

A jury has found Kenneth and Kimberly Horner of Milledgeville, Georgia guilty of tax fraud. The couple skimmed more than $1.5 million in cash from their towing business and failed to declare the income on their tax returns. They were convicted of filing false personal and corporate tax returns for the 2007 and 2008 tax years. Sentencing will take place on May 6.

The Horner couple owned Topcat Towing and Recovery Inc., located in Lithonia, Georgia. From 2005 to 2008, Topcat Towing was under contract with DeKalb County, Georgia, to provide towing for all county cars when required in the southern portion of the county. During this time, the Georgia couple reportedly took $1.5 million in cash receipts from the business and deposited the cash into their personal bank account.

To hide their crime, the towing business owners “structured” their cash deposits to ensure that they did not exceed $10,000 at a time. Banks are required to file a Currency Transaction Report (CTR) with the U.S. Department of Treasury any time a cash deposit tops $10,000.

The tax evaders used the unreported cash to pay for a $900,000 home in Conyers, Georgia. They owe the IRS $400,000 in taxes.

While Waters & Kraus is not handling this particular instance of tax fraud, we are representing whistleblowers with knowledge of similar types of tax scams. Before stepping forward, tipsters should understand how the process works. The IRS tax fraud lawyers with Waters & Kraus provide government collaborators with the legal counsel they deserve. Contact us or call our whistleblower attorneys at 800.226.9880 to learn how we can protect your interests. Our qui tam lawyers, like George Tankard and Anne Izzo in the firm’s Maryland office, are committed to advancing and protecting informants’ interests in whistleblower lawsuits.