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DOJ indicts Missouri scrap metal dealer for tax evasion

DOJ indicts Missouri scrap metal dealer for tax evasion
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Tammy Dickinson, U.S. Attorney for the Western District of Missouri, has announced that Joseph Lee Scott Deardorff, the owner and operator of Total Recovery and Recycling LLC, Independence, Missouri, has been charged in a four-count indictment on Sept. 20, 2016.

According to a Department of Justice (DOJ) release, the indictment alleges that Deardorff took a series of steps to willfully and intentionally evade payment of taxes and to hide assets from the Internal Revenue Service (IRS).

Between 2010 to 2012, the indictment claims, Deardorff received $497,543 in taxable. Deardorff owed $172,574 in taxes on that income, but willfully and knowingly failed to file accurate tax returns.

According to the DOJ, Deardorff allegedly attempted to conceal his assets from the IRS. Deardorff cashed about $740,547 of the $743,225 worth of checks he received from the sale of scrap vehicles and scrap metal in 2010.

In 2011 Deardorff allegedly cashed $731,656 of the $736,070 worth of checks received from sales, and in 2012 he allegedly cashed $452,663 of the $453,625 worth of checks he received.

All total, between the years 2010-2012, Deardorff cashed checks for $1,924,867 of the $1,932,919 of his total receipts.

According to the four-count indictment, when Deardorff sold scrap vehicles and metal, he requested the checks he received be under $1,500 so they would be easier to cash at gas stations and check cashing businesses. About 99 percent of the checks made payable to Deardorff or his business from the scrap metal companies were for $1,500 or less. Deardorff did not deposit into a bank account, the indictment says, but cashed about 90 percent of the checks from the scrap metal businesses.

Deardorff allegedly cashed the checks he received from the sale of scrap vehicles and scrap metal then purchased, with cash, additional scrap vehicles and scrap metal in an effort to hide the money he received from the sale of vehicles and metal from the IRS.

He also allegedly failed to file W2 forms for any of his employees between the three years. The contract labor costs in this matter which were unreported were about $172,800.

The federal indictment charges Deardorff with one count of attempting to interfere with the administration of internal revenue laws and three counts of tax evasion.

In conclusion, Dickinson cautioned that the charges contained in this indictment are accusations and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.

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Source: Recycling Today
DOJ indicts Missouri scrap metal dealer for tax evasion
<![CDATA[Tammy Dickinson, U.S. Attorney for the Western District of Missouri, has announced that Joseph Lee Scott Deardorff, the owner and operator of Total Recovery and Recycling LLC, Independence, Missouri, has been charged in a four-count indictment on Sept. 20, 2016. According to a Department of Justice (DOJ) release, the indictment alleges that Deardorff took a series of steps to willfully and intentionally evade payment of taxes and to hide assets from the Internal Revenue Service (IRS). Between 2010 to 2012, the indictment claims, Deardorff received $497,543 in taxable. Deardorff owed $172,574 in taxes on that income, but willfully and knowingly failed to file accurate tax returns. According to the DOJ, Deardorff allegedly attempted to conceal his assets from the IRS. Deardorff cashed about $740,547 of the $743,225 worth of checks he received from the sale of scrap vehicles and scrap metal in 2010. In 2011 Deardorff allegedly cashed $731,656 of the $736,070 worth of checks received from sales, and in 2012 he allegedly cashed $452,663 of the $453,625 worth of checks he received. All total, between the years 2010-2012, Deardorff cashed checks for $1,924,867 of the $1,932,919 of his total receipts. According to the four-count indictment, when Deardorff sold scrap…

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