Contractor falsely reported income not earned to IRS, suit claims

Steve Gonzalez May 28, 2008, 11:21am

Glen Suschanke filed suit against Patrick Woods and Woods Drywall Materials in Madison County Circuit Court May 27, alleging Woods is falsely reporting income earned in his name.

Represented by David Damick of St. Louis, Suschanke alleges on numerous occasions since 1999, Patrick Woods reported information to the IRS indicating that he had been paid sums of money as an independent contractor.

"Such reports to the government were false, and Defendant knew or had reason to know that such reports were false and that the same would cause, and did cause, serious injury and damage to Plaintiff," the complaint states.

Suschanke claims he was never employed by, nor was he an independent contractor for Woods during the periods of time income was reported.

He also claims Woods never paid anything to him during the period of time.

According to the complaint, Woods corrected false reporting in 1999 and 2000, however continued to falsely report income including:

  • $45,740 in 2002;

  • $23,209 in 2003; and

  • $37,826 in 2004.

    "Patrick Woods and/or his agents have refused to correct these false reports," the complaint states.

    Suschanke claims that as a result of Woods' "grossly negligent conduct" he has been caused to incur significant and unwarranted tax liabilities, including interest and penalties, has been subjected to a Notice of Tax Deficiency by the IRS, has been forced to file bankruptcy, forced to close bank accounts and has been forced to pay significant sums to the government for tax, interest and penalty liabilities that he does not owe.

    He also claims his credit has been damaged and slandered, has had liens placed on his property, incurred costs, expenses and attorney fees in the defense of his IRS claims and has suffered significant mental and emotional pain and suffering.

    Suschanke is seeking damages in an amount to be determined but in excess of $250,000.

    The case has been assigned to Circuit Judge Daniel Stack.

    08 L 455

  • More News