Criminal Tax Problems for Ex-New York Yankee

David Szen, the former traveling secretary for the New York Yankees, was sentenced on April 4, 2008 to 2 years probation for tax crimes. Szen was also ordered to pay a tax debt of approximately $10,285 in taxes, plus tax penalties and interest, as well as a fine in the amount of $7,500. Szen had waived his right to indictment and plead guilty to one count of filing a false tax return pursuant to Internal Revenue Code § 7206(1). It is likely that Szen will have additional civil tax debts.

According to the IRS, Szen while an employee of the New York Yankees, failed to report tip income of approximately $53,350 on his individual income tax returns for the tax periods 2001 through 2005. The tips came from unidentified players and coaches ranging from a few hundred to $10,000.

Sven took a leave of absence from the Yankees in July of 2007 pending the investigation by the Internal Revenue Service (IRS) Criminal Investigation Division and was later fired by the Yankees after pleading guilty.

According to the New York Post, the IRS has been investigating possible tax evasion by Major League Baseball clubhouse employees who pocket large, under-the-table tips from players for doing various nonbaseball related errands. The investigation took full swing after investigators noticed a large discrepancy in the amount of tips to clubhouse workers players claimed as tax deductions versus the amount of tip income clubhouse workers reported. The gap between deductions and nonreported tips ranges from around $100,000 to over $1 million per team.

If you have been accused by the IRS of tax fraud or tax evasion contact the Southern California tax lawyers at Brager Tax Law Group, A P.C.