Episode 5: The Tragic End of a Career: How One Man’s Retirement was Derailed by Tax Fraud

Today’s episode reveals the curious case of Larry Couchet, a once well-respected CPA in Ohio whose retirement was derailed by tax fraud. Larry was the president and majority shareholder of an accounting firm in Ohio and had a great reputation in his community. He was 59, nearing retirement, and all was well until he began helping his clients file false personal income tax returns. This went on from 2006 to 2010 until the IRS got involved. In May of 2014, the IRS charged four members of the Field Group, Larry’s clients, and by extension indicted Larry as well. In spite of being charged for tax crimes and sentenced with 12 months and one day in prison along with a lengthy supervised release and fines, Larry is back practicing as a CPA after reinstatement to practice.

Talking Points:

• Larry Couchet and his career prior to getting involved in tax fraud
• The amount of records Larry gained access to through Cadillac Ranch Restaurants
• The warehouse jointly owned between Larry and his client JHF Property Holdings
• The discrepancies in the Field Groups accounting books
• The previous criminal records of several of Larry’s clients
• Larry’s cooperation with the investigation and self-sacrifice of his accounting license
• The confusing nature of this case, mainly why would Larry knowingly commit these tax frauds when they were of no benefit to him?
• The question of whether this is a case of negligence or purposeful crime
• How Larry returned to practicing as a CPA in spite of having been imprisoned for tax crimes

Quotes

• “You cannot write off your federal taxes on your federal income tax returns.” (10:03-10:09 | Dom)
• “You simply can't put a wall between what you know and preparing the tax return. It's not possible.” (11:34-11:42 | Tom)
• “I find it hard to believe personally that somebody would intentionally commit tax evasion or tax crimes for no benefit to themselves. It's just in my mind, it doesn't add up.” (19:06-19:21 | Tom)
• “The best option for any tax professional who notices their client has outright crooked books or suspicious transactions is simply withdraw from working with that client. You don't have to report it to the IRS. All you have to do is let the client know of what errors you've spotted on their returns or documents. Keep a record of what you advise them and move on.” (35:46-36:26 | Tom)

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