Two South Carolina Residents Arrested for Evading Payment on State Income Taxes.
The South Carolina Department of Revenue news release on July 9, 2015, reports Jack Molloy and S. Craig Molloy, both residents of Beaufort County, SC, were arrested on five counts each of income tax evasion. They are accused of collectively evading more than $100,000 in state income taxes.
Jack Molloy is alleged to have evaded payment of $50,128 in state income taxes. Jack didn’t file South Carolina Individual Income Taxes for four years (2007-2011), but he did file non-resident South Carolina Individual Income Taxes during those four years claiming to be a Florida resident. An audit and investigation into Jack’s taxes are believed to have revealed that he was a South Carolina resident during those four years, and didn’t report $616,352 in taxable wages.
S. Craig Molloy allegedly evaded payment of $57,499 in state income taxes. S. Craig didn’t claim $846,964 that he received from Island Group, Inc., and claimed fraudulent expenses on his 2008-2012 South Carolina Individual Income Taxes.
A conviction for tax evasion can result in jail time and staggering fines and penalties. The IRS can enforce a number of penalties including seizure of assets, freezing bank accounts, closure of businesses and wage garnishment. Both individuals are presumed innocent until proven guilty.