Most taxpayers who fall behind on their taxes aren’t criminals. Life gets complicated. Business slows down, personal circumstances change, and before long, one missed filing becomes several. But there is a point at which willful non-compliance crosses a legal line—and a recent case from Arkansas illustrates exactly where that line falls.
At Sara Lane Tax Resolution, we share cases like this not to frighten people, but to make an important point: if you have unfiled returns or unpaid tax debt, taking proactive action is always better than waiting for the IRS to find you first.
The Case: Over $1 Million in Concealed Income
Ronnie Lyn Drummond, 52, of Arkansas, pleaded guilty to one count of tax evasion after a federal investigation revealed that he had deliberately concealed more than a million dollars in income from the IRS over several years.
Drummond operated an information technology business that provided services to various government entities. His tax problems weren’t a matter of simple oversight—they involved years of deliberate non-compliance, including calculated efforts to hide his income from federal authorities.
A Timeline of the Violations
- 2008–2012: Drummond failed to file federal tax returns entirely for a five-year period.
- When he eventually filed: His returns showed significant tax obligations that he chose not to pay.
- 2014–2017: Drummond received more than $1 million in gross receipts from his IT business. To prevent the IRS from tracking that income, he cashed the majority of his checks rather than depositing them into a bank account—a deliberate strategy to avoid creating a traceable paper trail.
- 2023: Drummond was formally indicted on one count of tax evasion and one count of failure to file taxes.
- Plea agreement: The failure-to-file count was dismissed as part of his guilty plea to the evasion charge.
The total tax loss to the government was determined to be $177,357.98.
What He Now Faces
- Up to 5 years in federal prison
- Up to 3 years of supervised release
- A fine of up to $100,000
- Restitution of $177,357.98
As IRS Criminal Investigation Special Agent Christopher J. Altemus Jr. stated in connection with the case: “Every U.S. Citizen has the common duty of paying their fair share of taxes.”
What Made This Tax Evasion—Not Just Non-Compliance?
This is an important distinction that taxpayers often misunderstand. Not all tax problems constitute criminal evasion. There’s a meaningful legal difference between:
- Civil tax non-compliance – Failing to file, underpaying, or making errors on your returns. These are serious matters that can result in significant penalties and interest, but they are typically handled through civil IRS enforcement rather than criminal prosecution.
- Criminal tax evasion – Willfully and affirmatively attempting to conceal income or deceive the IRS. The key word is willful. Cashing checks specifically to avoid creating a traceable paper trail is a classic example of affirmative evasion—not mere neglect.
In Drummond’s case, the combination of years of non-filing, unpaid taxes, and the deliberate act of cashing checks to hide income crossed from civil non-compliance into criminal territory.
The Lesson for Taxpayers with Unfiled Returns
If you’re behind on filing your taxes, this case may feel alarming. Here’s the important context: the IRS distinguishes between taxpayers who are struggling and those who are deliberately hiding. Taxpayers who come forward proactively—before the IRS initiates an investigation—are in a fundamentally different position.
If you have unfiled returns, here’s what you should know:
- You are not alone. Millions of Americans have unfiled returns, and the vast majority resolve their situation through civil channels without criminal consequences.
- The sooner you act, the better your options. Voluntarily coming into compliance—even years late—demonstrates good faith and significantly reduces your exposure.
- The IRS has programs designed for your situation. Depending on what you owe, options may include installment agreements, penalty abatement, an Offer in Compromise, or other relief programs that can make resolution manageable.
- You don’t have to navigate this alone. A qualified tax resolution professional can file your back returns, calculate what you actually owe (which is often less than you fear), and negotiate a resolution directly with the IRS.
How Sara Lane Tax Resolution Can Help
Sara Lane Guilford has spent over a decade helping individuals and small business owners navigate exactly these kinds of situations. As a CPA, Enrolled Agent, and Certified Tax Resolution Specialist, Sara is licensed to represent clients before the IRS in all 50 states.
If you have unfiled returns or outstanding tax debt, Sara can:
- File your back tax returns to bring you into compliance as quickly as possible
- Analyze your IRS account to understand exactly what you owe and what relief options may be available to you
- Negotiate with the IRS on your behalf for a payment plan, penalty reduction, or other form of relief
- Protect your rights throughout the process and ensure you’re treated fairly at every step
The goal is always to get you back in good standing with the IRS—with as little stress and cost as possible.
Conclusion
The Drummond case is a cautionary tale about what can happen when tax problems are ignored for years and income is actively concealed. A federal conviction, potential prison time, and a permanent criminal record are consequences that far outweigh the short-term relief of not paying.
If your situation involves unfiled returns or unpaid tax debt, the path forward is clear: get professional help, come into compliance, and negotiate a resolution. The IRS responds far better to taxpayers who come forward on their own than to those who are caught. The sooner you act, the more options you have.
Don’t Wait for the IRS to Find You First
Sara Lane Tax Resolution offers free, confidential consultations for taxpayers with unfiled returns, back taxes, or IRS debt. Call 850-462-2630—available 24/7—or visit saralanetaxresolution.com/contact. The earlier you reach out, the more we can do for you.
Frequently Asked Questions
Q: If I haven’t filed taxes in several years, am I at risk of criminal prosecution?
In most cases, no. Criminal tax evasion requires willful, affirmative acts of concealment—like the check-cashing scheme in this case. Simply failing to file, while a serious civil matter, is typically addressed through civil IRS enforcement rather than criminal prosecution. That said, every situation is different, and speaking with a tax professional is strongly advisable.
Q: How many years of unfiled returns does the IRS require me to file?
The IRS generally requires the last six years of unfiled returns to achieve compliance, though this can vary based on your specific account history and circumstances. A tax professional can determine exactly what is required in your situation.
Q: Will I face criminal charges if I voluntarily come forward about unfiled returns?
Proactively coming into compliance is viewed very differently by the IRS than being caught after an investigation. While outcomes depend on the specifics of each situation, voluntarily filing past-due returns and working with the IRS to resolve your balance significantly reduces your risk and demonstrates good faith.
Q: Can the IRS file a return for me if I don’t file?
Yes. The IRS can prepare what’s called a Substitute for Return (SFR) on your behalf. These returns typically reflect only the income the IRS already knows about—and often miss deductions and credits you’re entitled to—resulting in a higher tax bill than necessary. It is almost always better to file your own returns.
Q: What should I do first if I have several years of unfiled returns?
Contact a qualified tax resolution professional before reaching out to the IRS on your own. Sara Lane Tax Resolution can review your full situation, determine what needs to be filed, and create a strategy that puts you in the best possible position before any IRS communication takes place.
