Minority Shareholders Liable For Part Of Corporate Income Tax

The Tax Court decision in the case of William Kardash and Charles Robb is one of those where the back story is quite a bit more interesting than the decision. The problems of Mr. Kardash and Mr. Robb are collateral damage in the collapse of Florida Engineered Construction Products Corp (FECP). Their former boss John D. Stanton currently resides at a low security federal correctional institution in Sumterville FL having been sentenced to 10 years and payment of $37,816,875 in 2013. According to the DOJ news release

According to evidence presented at trial, Stanton was the former president of Florida Engineered Construction Products Corporation ("FECP"), more commonly known as Cast Crete Corporation. FECP/Cast Crete manufactured and sold concrete construction products. As president of the company, Stanton interfered with the administration of the tax laws by impeding an Internal Revenue Service ("IRS") audit of the company, creating and backdating two fraudulent demand promissory notes totaling $500,000,000, causing false Forms 1099 to be filed with the IRS, failing to file corporate tax returns on behalf of the company, and other acts of obstruction and concealment. During approximately 2004 through 2008, the company made well over $100 million and failed to file a single corporate income tax return.

And then there's the bigamy. Wow.