Tax violation laws are serious criminal offenses in Texas. The Criminal Investigation Division in Texas monitors all individuals who intentionally commit tax violations in the state. The Criminal Investigation Division is administered by the Texas Comptroller of Public Accounts. The Criminal Investigation Division’s primary mission is to stop intentional criminal actions, which include misdemeanors or felonies, to be committed against the Texas Comptroller of Public Accounts. All state tax laws in Texas are managed by the Texas Comptroller of Public Accounts.
Tax Laws and Policy News in Texas
The Texas Comptroller of Public Accounts has a research database that helps individuals understand the tax laws in Texas. The State Tax Automated Research System (STAR) is a public service that gives residents of Texas access to a wide-range of documents. As of June 1, 2015, all the Texas Comptroller of Public Accounts decisions on tax laws will be added to the STAR system. For residents who want to stay current with the STAR system, there is a monthly update search form link located on the homepage of the STAR system.
Recently, the Texas Comptroller of Public Accounts added information to the STAR system on the Texas Franchise Tax. According to the new information, any farmer who owns or sells crops, which he or she grows, may be qualified to take out the cost of goods sold (COGS) deduction that determines the margin for the Texas Franchise Tax. For more information, individuals should locate the STAR document titled 201504068L.
There was also a recent tax extension mandated by Governor Abbot who announced the businesses located in recent counties that were declared a state of disaster due to the recent weather conditions will have a 90 day extension to file and pay state taxes. Businesses that want to take advantage of the tax extension will need to contact the Texas Comptroller to make arrangements.
Texas has an Annual Sales Tax Holiday that begins on August 7th and ends on August 9th of 2015. The Annual Sales Tax Holiday is a three-day event that allows Texas residents to purchases school supplies without having to pay state and local sales taxes if the supplies are priced under $100.
There have been new tax laws adopted in Texas, which are explained on the Texas Comptroller of Public Account’s website. The Motor Vehicle Sales Tax was filed with the Texas Secretary of State in May of 2015. The tax law will be in effect on June 2, 2015.
The Texas Comptroller of Public Accounts also passed a new Mixed Beverage Sales Tax, which was effective on April 27, 2015. The Mixed Beverage Sales Tax will add a rate of 8.25% on each drink that is alcoholic and nonalcoholic, which has been prepared on ice by an establishment.
News on Tax Violations in Texas
The Texas Comptroller of Public Accounts reported a man who was sentenced to serve 21 months in a federal prison for committing a serious tax violation. Jose Luis Suarez was sentenced on June 26, 2014 after being charged with wire fraud, which violated Texas sales tax laws. Jose Suarez was the owner of Air One Mobile Welding Supply and was in violation of Texas tax laws after he failed to report the company’s taxable sales. As a result, Suarez was reported to owe $264,314 in sales taxes that he failed to report. According to allegations, Suarez filed the tax returns with the Texas Comptroller of Public Accounts through the Internet, which was in direct violation of the Wire Fraud statute.
Jose Suarez pleaded guilty to a six counts of wire fraud. After Suarez serves his 21 month sentence in federal prison he will be supervised for three years on each count of the tax violations, which will be administered concurrently. In addition to his sentence and probation, Suarez was ordered to pay the total amount of taxes he failed to report. The case was handled the Criminal Investigation Division of the Texas Comptroller, Homeland Security Investigations, and the Internal Revenue Service Criminal Investigation department.
Another man in Texas was charged with mortgage fraud and violated several federal income tax violations. Lawrence Michael Day, from Fort Worth, entered a guilty plea after the charges surfaced in 2013. Day was also charged with conspiracy to commit mail and wire fraud against a financial institution. From 2005 through 2008, Day and other individuals were part of a conspiracy that provided lending organizations with fraudulent forms, which resulted in fraudulent loans based on the false information. As a result, 28 properties that were located in Plano, Prosper, Hurst, McKinney, Fort Worth, Euless, Fairview, and other areas were accumulated by Day during the scheme. Day’s tax violations resulted a personal profit of $1,877,032.56.
Day and five other individuals who were part of the conspiracy were sentenced on April 11, 2013 for participation in tax violations that included mortgage fraud. Day could face up to 30 years in a federal prison for mortgage fraud and has agreed to pay $1,877,032.56. Furthermore, Day could face up to three years in a federal prison for each tax violation charge and a $100,000 fine.
Wanted Criminals in Texas for Tax Violations
The Texas Comptroller of Public Accounts has established a list of the most wanted individuals in the state for committing tax violations. The Criminal Investigative Division has listed these individuals on the Texas Comptroller of Public Accounts website:
• Yousef Ishaq Abuteir, who is age 51, is wanted for several attempts to evade the Texas Motor Fuel Tax. He was convicted in Travis County in December of 2008 and violated bond before he was sentenced. The jury sentenced him to seven years in federal prison and a $10,000 fine. Due to the fact Abuteir jumped bond, he also faces an additional 10 years in prison.
• Tau Lu is wanted for possession of unstamped cigarettes, which is a tax violation in Texas. He was indicted in June of 2003 and remains a wanted criminal in Texas. Lu evaded $23,165 in taxes for his possession of unstamped cigarettes.
