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Taxes aren’t just another business expense you can ignore—and one business owner is learning that lesson the hard way. Guy S. Cook, the former owner of Bacterin International, Inc., pleaded guilty to tax evasion after failing to pay the IRS what he owed. Now, he’s facing up to five years in prison, a $100,000 fine, and three years of supervised release.
So, what happened? Back in 2014, Cook sold his shares in the company and walked away with $2.4 million in capital gains. He correctly reported his earnings on his tax returns for 2014 and 2015, with a total tax bill of $643,884. But instead of paying it, he ignored it—despite his tax preparer’s warnings.
Rather than settling his debt, Cook spent years trying to hide his money from the IRS. Between 2017 and 2021, he took calculated steps to avoid paying his taxes, including:
- Using business bank accounts and a company credit card to cover more than $300,000 in personal expenses.
- Funneling $380,000 through nominee bank accounts to keep it hidden from the IRS.
- Converting $600,000 of his salary into stock to avoid having taxable income.
It’s the classic mistake many business owners make—thinking they can outsmart the IRS. But the IRS always catches up. Now, Cook’s future is in the hands of the court, and he could spend years behind bars.
Why Business Owners Should Pay Attention
Many business owners make similar missteps without realizing the consequences. Maybe you’ve delayed tax payments, misclassified expenses, or used company funds for personal reasons. While these may seem like harmless decisions at first, they can quickly spiral into serious legal trouble.
The IRS takes tax evasion seriously, and once they start investigating, they dig deep into your finances. Just like in Cook’s case, they’ll track every transaction, from business credit cards to nominee accounts, until they find what they’re looking for.
How IRSProb.com Can Help
The best way to avoid becoming the next headline? Stay compliant and get expert tax guidance. At IRSProb.com, we help business owners avoid costly mistakes, resolve tax issues, and protect their businesses from IRS scrutiny.
If you’re behind on taxes, dealing with IRS notices, or worried about compliance, reach out today. The sooner you act, the more options you have. Don’t wait for an IRS audit—take control of your taxes now.
