Costly $6.2M Tax Settlement: 4 Critical Lessons for Business Owners

Tax Relief Insights & IRS Help Articles

The Cost of Ignoring Tax Settlement

In a costly tax settlement case, Brian Davison, the co-founder and former CEO of Tampa-based Equialt, LLC, was sentenced to three years in federal prison for making false and fraudulent statements on tax returns. Along with prison time, U.S. District Judge Mary S. Scriven ordered him to pay $6,293,592 in restitution to the Internal Revenue Service (IRS).

This case is a harsh reminder of why individuals and business owners must explore legal tax settlement solutions instead of risking fraud. When IRS problems are ignored, the consequences can be devastating.

How Brian Davison’s Tax Fraud Unfolded

According to Justice.gov, between October 2018 and December 2020, Davison filed multiple personal tax returns that underreported his income by at least $29.7 million, resulting in a tax loss of more than $6.2 million.

A Troubled Company Under Scrutiny

Davison’s firm, Equialt, LLC, was placed into judicial receivership after a SEC enforcement complaint in 2020. The company’s financial troubles and investor complaints triggered deeper investigations into his personal and corporate filings.

Investigations by IRS and FBI

The case was pursued by the IRS Criminal Investigation (IRS-CI) division alongside the FBI Tampa Division. Assistant U.S. Attorney Adam J. Duso prosecuted the matter.

IRS-CI, which boasts a 90% federal conviction rate, is one of the toughest law enforcement arms in the U.S. When they get involved, conviction is almost inevitable.

4 Critical Lessons from the $6.2M Tax Settlement Case

Ignoring Tax Settlement Options Leads to Prison

Davison could have explored legal programs like the Offer in Compromise (OIC) to resolve his IRS debt. Instead, his fraudulent filings led to prison, restitution, and public disgrace. If you owe back taxes, consider IRSProb’s Offer in Compromise Services to see if you qualify to settle for less than what you owe.

The IRS Works Closely with Other Agencies

This case highlights how the IRS-CI, FBI, and SEC collaborate to uncover financial crimes. Fraudulent returns or unreported income can quickly escalate to a multi-agency investigation. Business owners can avoid scrutiny by staying compliant with help from IRSProb’s Small Business Tax Solutions.

Tax Settlement Programs Are a Lifeline

Instead of committing fraud, taxpayers can take advantage of several settlement options, including:

Offer in Compromise – settle for less than the full amount owed
IRS Payment Plans – structured monthly payments
Currently Not Collectible (CNC) – pause IRS collections temporarily

IRSProb helps clients navigate these programs and fight back against aggressive IRS collection actions.

IRS-CI Rarely Misses Fraud

The IRS Criminal Investigation Division has unmatched resources to uncover fraudulent tax behavior. Their 90% conviction rate proves that hiding income is not a winning strategy. If you’re under audit or collections pressure, protect yourself with IRSProb’s IRS Audit Defense and Collections Defense Services.

How to Protect Yourself from Becoming the Next IRS Case

Report All Income Honestly

The IRS matches income through third-party reporting systems. Falsifying returns is almost always discovered.

Use Legal Settlement Programs

Instead of hiding income, apply for legal relief like IRS Penalty Abatement or an Installment Agreement.

Get Professional Guidance Early

IRS problems can spiral quickly. Working with IRSProb gives you access to:

Back Taxes Help
Payroll Tax Problem Defense
Trust Fund Recovery Penalty Defense
Innocent Spouse Relief
IRS Appeals Representation

Conclusion: Don’t Wait Until It’s Too Late

The $6.2 million tax settlement case of Brian Davison is a cautionary tale: underreporting income, abusing business structures, and ignoring IRS obligations leads to prison, restitution, and ruined reputations.

If you’re facing IRS debt, wage garnishment, or audit threats, take action today. Visit IRSProb.com to explore safe, and legal tax settlement options and regain control of your financial future.