Tax Crime Junkies

Episode 5 Fine Line Files: What the IRS Really Means by ‘Other Income’

Episode Summary:In this solo episode of The Fine Line Files, Dominique Molina delves into one of the most fascinating—and misunderstood—corners of tax law: what kind of income is taxable? Spoiler alert: it’s all of it. From selling lemonade to smuggling contraband, the IRS doesn’t discriminate. Every dollar earned leaves a paper trail, and Dom unpacks the legal and ethical dilemmas that arise for tax professionals navigating these murky waters.
Drawing from the infamous cases of Al Capone and Michael Miske, this episode explores how tax law can topple empires, whether built on bootlegging or black market fireworks. Dom also dives into practical advice for tax professionals: how to spot red flags, avoid liability, and balance due diligence with client relationships.
In This Episode, We Cover:
The origins of the “Al Capone Rule” and why all income, even illegal earnings, is taxable.
The IRS’s guidelines on reporting stolen property, bribes, and income from illegal activities.
How tax evasion brought down mobsters when murder charges couldn’t stick.
The ethical tightrope tax professionals walk when handling unconventional or suspicious income.
Practical steps for tax pros to identify and address red flags in client documentation.
Key Takeaways:
Reporting illegal income may not incriminate you for the crime but can protect you from tax evasion charges.
Even legitimate state-level activities, like cannabis sales, require meticulous federal compliance.
Ignoring red flags as a tax professional can lead to reputational damage, fines, or worse.
The IRS’s universal approach to taxable income reinforces the integrity of the tax system, ensuring no one—criminals or otherwise—is above the law.
Memorable Quote:“Every dollar earned has a tax story, and every tax story leaves a trail. Whether that trail leads to justice or jail depends on how closely we follow the rules.”
Connect With Us:
Website: TaxCrimeJunkies.com
Instagram & Twitter: @TaxCrimeJunkies
If You Loved This Episode:Please subscribe, leave a review, and share The Fine Line Files with your friends. Join Dom next time for another fascinating dive into the intersection of taxes, crime, and justice.
Stay Curious. Stay Vigilant. Stay On the right side of the Fine Line.

Fine Line Files Episode 4 Ethics on the Edge: The Tax Pros' Role in Fighting Fraud

In this episode of The Fine Line Files, Dom delves into a critical yet often overlooked aspect of tax planning—verifying client claims and spotting red flags. Drawing lessons from the Mike Miske case, we explore how unchecked assumptions can lead to massive consequences for both clients and tax professionals.
Join as she discusses:
The importance of professional skepticism in tax planning.
Real-life examples of red flags that can’t be ignored.
Tips for setting boundaries with clients while maintaining a strong working relationship.
Practical strategies to protect your practice from liability.
Whether you're a seasoned tax pro or just starting out, this episode will sharpen your skills and remind you why thoroughness matters. Don’t miss this critical discussion about staying on the right side of the fine line in tax!
Follow us for more: TaxCrimeJunkies.com | @TaxCrimeJunkies on Twitter & Instagram.

Episode 46 Hawaiian Shadows and the Cost of Corruption: Miske’s Reign and Reckoning

In this gripping episode of Tax Crime Junkies, we delve into the dark underworld of Hawaii, where paradise meets corruption. We unravel the chilling story of Michael Miske, a once-prominent businessman whose empire of pest control, nightclubs, and fireworks concealed a criminal enterprise of racketeering, drug trafficking, tax fraud, and violence.
From fraudulent financial schemes to acts of intimidation, and even allegations of murder, Miske’s actions left a trail of devastation across the islands. We explore his rise to power, the federal investigations that spanned decades, and his ultimate downfall, marked by a guilty verdict on 13 counts earlier this year.
But the story takes an unexpected twist—just weeks before his sentencing, Miske’s death at the Federal Detention Center adds an enigmatic chapter to his already infamous legacy. Join us as we untangle the layers of this case, revealing the toll on his victims and their families, and the systemic corruption that enabled his reign.
In This Episode, We Cover:
The tragic car accident that sparked Miske’s vendetta against Jonathan Fraser.
Miske’s elaborate schemes, including nightclub skimming, structuring, and tax evasion.
The shocking use of chemical weapons against rival businesses.
Testimonies from associates and victims that ultimately sealed his conviction.
The ripple effect of his actions on Hawaii’s community and justice system.
The mystery surrounding Miske’s sudden death in federal custody.
Key Quote:“I truly believe that without Mike Miske walking around, without his authoritative figure, without the money, that Hawaii can be Hawaii again.” – Ashley Wong, girlfriend of Jonathan Fraser
Connect With Us:
Visit our website: TaxCrimeJunkies.com
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If You Enjoyed This Episode:Please subscribe, leave a review, and share Tax Crime Junkies with your friends. Join us next week as we expose more loopholes that led to crime—and the truths that closed them for good.
Stay vigilant, and remember: every crime leaves a trail.

Fine Line Files Episode 3 Internal Controls

The Fine Line Files: The Importance of Internal Controls
Episode OverviewIn this episode of The Fine Line Files, Dom and Tom take a deep dive into the world of internal controls—those invisible guardians of your organization that keep operations smooth, compliant, and secure. Using the jaw-dropping story of Sandy Jenkins as a cautionary tale, they explore why internal controls are not just about bureaucracy, but a critical tool for safeguarding assets, ensuring accountability, and maintaining trust.
From defining the five interrelated components of internal control structures to discussing specific examples like segregation of duties and risk assessment, this episode equips you with a comprehensive understanding of what internal controls are and why they matter. Plus, Dom keeps things lively with her signature humor, making this heavy topic both informative and entertaining.
What You’ll Learn in This Episode
What are Internal Controls?Understand the fundamental concepts of internal controls and how they serve as the backbone of reliable financial reporting and compliance.
The Five Components of Internal Control Structures:
Control Environment
Risk Assessment
Control Activities
Information and Communication
Monitoring
Types of Internal Controls:Discover the differences between preventive vs. detective controls, hard vs. soft controls, and manual vs. automated controls.
Why Internal Controls Matter:Learn how these systems protect against fraud, safeguard assets, and help organizations operate efficiently.
Practical Tips for Implementing Internal Controls:Find out how to create an effective control environment in your department and ensure compliance.
Key Takeaways
Without strong internal controls, organizations open themselves up to financial risk, fraud, and operational inefficiency.
Internal controls are more than policies—they’re a culture and a mindset that prioritize integrity and accountability.
The tragic case of Sandy Jenkins highlights the devastating consequences of ignoring internal controls and serves as a wake-up call for businesses of all sizes.
Episode Highlights
Dom's Quip: "Segregation of duties is like a group project—you don’t want one person doing all the work, because let’s face it, we’ve all met that one slacker who ruins it for everyone."
Tom’s Insight: "Internal controls are like a seatbelt. You may not think about it when everything’s fine, but you’ll be glad you have it when something goes wrong."
Resources Mentioned
Committee of Sponsoring Organizations of the Treadway Commission (COSO) framework for internal controls.
Key risk assessment and monitoring tools used in real-world scenarios.
Connect with UsGot a question or an idea for a future episode? Reach out to us:
Website: TaxCrimeJunkies.com
Social Media: @TaxCrimeJunkies on Instagram and Twitter
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DisclaimerThis podcast is for informational purposes only and does not constitute legal or professional advice. Always consult with a qualified professional before making any decisions.

Episode 45 Million-Dollar Fruitcakes: How One Man Cooked the Books and Lived Lavishly

In this episode of Tax Crime Junkies, Dom and Tom dive into one of the most extravagant cases of embezzlement in corporate history—featuring fruitcakes, private jets, and a $16 million theft that rocked a Texas institution.
Collin Street Bakery, famous for its iconic fruitcakes, became the epicenter of a financial scandal when longtime accountant Sandy Jenkins turned the company’s funds into his personal piggy bank. For nearly a decade, Jenkins funneled millions into a lavish lifestyle of luxury cars, high-end jewelry, and beachfront vacations. How did he get away with it for so long? And what finally brought his scheme crashing down?
Join us as we uncover the sweet and sticky details of Sandy Jenkins’ infamous crime. Along the way, Dom and Tom share their thoughts—and taste buds—with a live fruitcake sampling straight from Collin Street Bakery itself. Spoiler alert: not everything about this story is a crime against taste!
What You’ll Learn in This Episode:
How an unassuming accountant masterminded an eight-year embezzlement scheme.
The red flags Jenkins ignored (and how companies can avoid similar fraud).
The incredible lengths Jenkins went to fund his lifestyle—and how it all unraveled.
How Collin Street Bakery has used this story to sweeten its reputation.
Taste Test Alert:
What better way to discuss this case than with a bite of the crime itself? Dom and Tom give their verdict on Collin Street Bakery’s world-famous fruitcake. Did it live up to the hype? Tune in to find out!
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Episode Two Fine Line Files Backing Up Your Tax Strategy

Episode Highlights:
The Burden of Proof: Why taxpayers must prove their deductions.
The Cohan Rule: How it works and its limitations.
Carlos Arizaga’s Case: A real-life example of what happens without proper records.
Practical Tips: How to document expenses, track cash payments, and avoid disallowed deductions.

Episode 1 - The Fine Line Files: Management Companies – Smart Strategy or Tax Trap?

Show Notes for The Fine Line Files: Management Companies – Smart Strategy or Tax Trap?
Episode Summary: In this debut episode of The Fine Line Files, Dominique Molina explores the use of management companies in tax planning. While these entities can be powerful tools for efficiency and strategic tax benefits, they can also become pitfalls if not managed correctly. Through real-life case studies, this episode uncovers where things can go wrong and how to stay compliant to avoid costly tax issues.
Key Segments:
Introduction
Introduction to the new The Fine Line Files series and its purpose: to help listeners understand and avoid tax traps.
Overview of today’s topic: the use and misuse of management companies.
Case Study 1: The Marijuana Dispensary
Story of Alternative Health Care Advocates and Wellness.
Key takeaway: Structuring a management company to sidestep tax restrictions without solid backing can lead to double disallowances.
Case Study 2: The Trucking Business
Overview of Daniel Fuhrman’s trucking operations and Grasshopper Leasing LLC.
Lesson learned: Proper documentation and agreements are essential for defending expense deductions.
Case Study 3: The Dentist’s ESOP Strategy
The failed management company and ESOP setup of Dr. Wiley M. Elick.
Key takeaway: Even with a contract, the absence of real services can dismantle a strategy.
The Importance of Substance Over Form
Explanation of why journal entries alone aren’t enough.
Practical advice on maintaining separate accounts, employing staff, and documenting services.
Practical Tips and Actionable Steps
Tips on solidifying contracts, maintaining real-time records, and issuing invoices promptly.
The importance of annual reviews and compliance monitoring.
Busting Myths and Reinforcing Compliance
Debunking common myths such as “a contract is enough” and “journal entries are proof.”
Reinforcing the need for genuine operations and documented activities.
Key Takeaways and the Human Element
Reflection on the balance between ambition and compliance.
Advice for tax professionals on becoming proactive advisors.
Conclusion
Recap of the major lessons from the episode.
Final words on the importance of transparent and well-documented strategies.
Takeaways:
Proper execution, including thorough documentation and genuine business operations, is key to using management companies effectively.
Tax professionals can offer added value by helping clients maintain compliance and mitigate risk.
The line between legitimate tax strategy and tax crime is thin but visible with the right precautions.
Call to Action: Stay tuned for future The Fine Line Files episodes, where we’ll continue to explore the traps, myths, and strategies in the world of tax planning to keep you informed and compliant.
Connect with Us:
Website: www.TaxCrimeJunkies.com
Follow us on social media:@taxcrimejunkies
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Subscribe and Review: If you enjoyed this episode, be sure to subscribe, leave a review, and share it with others who want to stay on top of tax planning insights and avoid common traps.

Episode 44 The CPA’s Dark Secret: The Fred Tokars Story

Description: When Sara Tokars was brutally murdered in front of her young children, the crime shocked the quiet suburban community of Cobb County, Georgia. What appeared to be a senseless act of violence unraveled into a chilling story of greed, betrayal, and murder-for-hire. At the center of it all was Fred Tokars, a well-known CPA, attorney, and former prosecutor with a dark side. In this episode, we uncover how Fred Tokars orchestrated a deadly plot that exposed a web of drug money, nightclub dealings, and tax fraud, leaving his family and community devastated. Join hosts Dominique Molina and Tom Gorczynski as they peel back the layers of this tragic case, revealing how one man's quest for power and money led to unimaginable consequences.
Episode Highlights:
Introduction to the case and Fred Tokars' background as a CPA and attorney.
The tragic events leading to the murder of Sara Tokars.
How Fred's professional facade hid his involvement in money laundering and drug deals.
The investigation that exposed Fred’s criminal network and led to his arrest.
The lasting impact on the Tokars family, especially on Sara’s sons.
Reflections on justice, crime, and the hidden motives behind financial crimes.
Key Quotes:
“In Fred’s mind, a divorce meant the unraveling of everything he had built — his secret deals, his drug connections, his entire empire.”
“Tokars wasn’t just a tax expert; he was a master manipulator, using his skills to weave a web of deception that eventually cost his wife her life.”
“It’s not just about numbers — sometimes it’s about justice.”
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Episode 43: Tax Planning or Tax Conning? The story of Todd Mardis

Episode Description:In this episode of Tax Crime Junkies, we dive into the scandalous world of fraudulent tax planning, focusing on Capital Preservation Services and its infamous co-founders, Todd Mardis and Walt Dallas. What started as a seemingly legitimate tax planning company, offering small business owners the promise of massive tax savings, turned into a cautionary tale of deceit, manipulation, and multi-million dollar losses. Join hosts Dominique Molina and Tom Gorczyński as they unravel the details of this predatory tax scheme, the legal battles that ensued, and the shocking consequences that left clients owing hundreds of thousands of dollars in penalties and back taxes.
Learn the answer to the question: Am I liable for a tax plan if I provide a Written Tax Plan Document?
And in a twist nobody expected, we reveal the final chapter in Todd Mardis' criminal record—one far darker than tax fraud.
Key Takeaways:
The fine line between aggressive tax strategies and fraud
How hundreds of small business owners fell victim to Capital Preservation Services' false promises
The importance of working with licensed, ethical tax professionals
Why following advice without fully understanding the tax law can lead to financial disaster
The moral and legal responsibilities of tax planners
Listen now at: taxcrimejunkies.comFollow us on Twitter/X: @certtaxcoachInstagram: @taxcrimejunkies
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Episode 42 Part II Joe Conforte - The Downfall of Kemp Shiffer: When the Hunter Becomes the Hunted

Episode Description:In Part 2 of our deep dive into the scandalous world of Joe Conforte and Mustang Ranch, we turn the spotlight on IRS agent Kemp Shiffer—the man who relentlessly pursued Conforte for over a decade. But what happens when the enforcer of the law starts breaking it himself? Join Dominique and Tom as they unravel the shocking downfall of the investigator who became too familiar with his target's world and ultimately tried to walk in his shoes.
Last episode, we explored the rise and fall of Joe Conforte, the cunning owner of Nevada's most notorious brothel. This week, the tables turn as we investigate the investigator. Kemp Shiffer’s career was defined by his pursuit of Conforte, but it seems the lines blurred between law and crime. Find out how Shiffer went from IRS agent to a criminal defendant, and how his obsession with Conforte’s empire led him to try his hand in the very business he once sought to shut down.
Key Highlights:
Recap of Part 1: A brief look back at Joe Conforte's criminal empire, the seizure of Mustang Ranch, and his ultimate escape to Brazil.
Kemp Shiffer’s Background: Learn about Shiffer’s career trajectory, from his start in criminal justice to his rise as an IRS agent tasked with bringing Conforte down.
The Battle for Mustang Ranch: Shiffer's dogged determination to dismantle Conforte’s network of enablers, resulting in a 33-count indictment against the brothel boss.
Breaking Bad: How Kemp Shiffer’s frustration with Conforte's elusiveness and a decade-long obsession led him to go rogue, making threats to local officials and eventually backing a new brothel venture.
The Ironic Twist: Shiffer’s arrest in 2011 for transporting a woman across state lines for prostitution—the very kind of crime he had spent his career prosecuting.
Conforte's Memoir: Insights from Conforte’s autobiography that draw parallels between his disdain for pimps and his disdain for paying taxes, with a surprising connection to Shiffer’s downfall.
The Final Verdict: Shiffer’s guilty plea, his resignation from the IRS, and the consequences of his attempt to "join 'em if you can't beat 'em."
Quotes from the Episode:
"Joe Conforte was a crook, but he was a brilliant crook. Kemp Shiffer knew this better than anyone, but somewhere along the line, he decided to follow Joe's playbook." — Dom
"Shiffer went from enforcing the law to breaking it. In a twist of irony, the man who pursued Conforte for tax evasion ended up arrested for pimping." — Tom
"If you spend long enough in someone’s shadow, maybe you start becoming a little more like them than you’d like to admit." — Dom
 
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