On March 22, the Department of Justice (DOJ) announced that a federal grand jury in Los Angeles indicted California attorney Milton C. Grimes in connection with allegations that he owes the IRS more than $1.7 million in taxes for tax years 2010 and 2014.
According to the government, Grimes allegedly evaded efforts to collect unpaid taxes by purchasing cashier’s checks and making cash withdrawals from business accounts, thereby avoiding funding of his personal accounts. The government believes Grimes took these actions to maintain low balances in his personal bank accounts and thus evade collection efforts. The government alleges that Grimes withdrew approximately $16 million in cashier’s checks from 2014 to 2020.
Additionally, the government asserts that Grimes declared a tax liability of around $700,000 when filing his personal taxes for tax years 2018 through 2021, which he allegedly did not pay. In total, the indictment suggests a tax loss of approximately $2,418,050 to the IRS.
If convicted, Grimes could face severe penalties, including potential imprisonment for up to five years for tax evasion, and an additional one year for each count of willful failure to pay taxes. CG attorneys will continue to monitor and provide updates on this case as they become available.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. The attorneys at Chilivis Grubman represent clients of all types and sizes in connection with federal tax investigations. If you need assistance with such a matter, please contact us today.