Stack to open non-jury trial Monday in tax fraud case
A non-jury trial is scheduled to start Monday over allegations that a man used fraudulent companies and tax numbers to distort a couple's earnings that were reported to the Internal Revenue Service (IRS).
Plaintiffs Glen Suschanke Jr. and Tabitha Suschanke claim that defendant Patrick Woods and his agents misreported Glenn Suchanke's status as an independent contractor from 1999 to the present. Those reports allegedly have false reports of the couple's income to the IRS, leading, they claim, to unjust tax penalties, interest and bankruptcy.
Madison County Circuit Judge Daniel Stack is set to open the trial at 9 a.m.
According to the complaint, Patrick Woods was "doing business in his own name, and in the name of various business entities and fictitious names." Those named in the complaint include Woods Drywall Materials Inc., Woods Drywall & Painting, Inc., "Drywall Supply," and "Drywall Material."
The suit claims that Patrick Woods "was the alter ego of each of the foregoing businesses."
The Suschankes claim that Woods reported on numerous occasions during the last 10 years that Glen Suschanke had been paid sums of money as an independent contractor when he had not worked for any of the businesses.
Over time, the sums reported were between $15,700 to $45,700.
The Suschankes claim they, their attorney and their accountant contacted Woods and his agents at numerous times but that the defendant kept reporting the income to the IRS.
Due to the defendants' alleged actions, the Suschankes incurred "significant and unwarranted tax liabilities," interest, penalties, had to file for bankruptcy, close bank accounts and have incurred other damages including attorneys' fees, emotional pain and suffering and costs.
Their suit seeks unspecified damages and costs including a sum to deter Woods from such future actions.
The Suschankes are represented by David Damick of St. Louis.
The defendants are represented by William Starnes III.
The case is Madison case number 08-L-455.