A federal grand jury in Jacksonville, Florida, has indicted a local businessman on charges of tax evasion. The indictment against Phillip Mak alleges that from 2008 through 2020, Mak earned approximately $10.3 million but failed to pay federal taxes and did not file tax returns for most of those years.
The IRS claims that Mak owes approximately $1.9 million in taxes, penalties, and interest for the tax years 2008, 2009, 2012-2015, and 2019-2020. Allegedly attempting to hide his assets from the IRS, Mak is accused of transferring $1 million to his domestic partner’s bank accounts and shifting ownership of his home to his partner's trust following an interview with IRS investigators. Furthermore, he allegedly created a nominee entity to deposit income into an account under that entity's name.
If convicted, Mak could face up to five years in prison for tax evasion and one year for each charge related to failure to file tax returns and pay taxes. Sentencing will be determined by a federal district court judge who will consider the U.S. Sentencing Guidelines among other factors.
The announcement was made by Acting Deputy Assistant Attorney General Karen E. Kelly of the Justice Department’s Tax Division and U.S. Attorney Roger B. Handberg for the Middle District of Florida.
IRS Criminal Investigation is handling the investigation while Trial Attorneys Isaiah Boyd and Michael Jones of the Tax Division along with Assistant U.S. Attorney John Cannizzaro are prosecuting the case.
It is important to note that an indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.