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A Foot Massage More Painful Than Acupuncture

A Lowell chiropractor was recently sentenced in federal court in the District of Massachusetts for bribing an IRS agent.

Stephen Jacobs, age 56, was sentenced by U.S. District Court Judge William G. Young to nine months in prison and ordered to pay a fine of $ 10,000.

In October 2014, Mr. Jacobs pleaded guilty to bribery of a public official. According to the indictment, Mr. Jacobs met with an IRS auditor back in August of 2013 to answer questions pertaining to his 2011 federal income tax returns.

During the interview, the examiner asked Mr. Jacobs about two deductions that he had claimed for tax year 2011 – each in the amount of $ 5,000. Mr. Jacobs admitted to paying two different women after they had accused him of “inappropriate touching” during medical treatments.

Mr. Jacobs said that he paid the women because he was concerned that they would report him to the police or to the chiropractic board. Like a parakeet who can’t keep its beak closed shut, Mr. Jacobs described exactly what he did to cause these women to file complaints against him. Specifically, he kissed and caressed one woman’s feet while he was treating her. And he inappropriately touched the second woman while giving her a massage.

The auditor informed Mr. Jacobs that neither deduction was allowable. In response, Mr. Jacobs asked if there was anything he could do to “just deal with this…” When the agent said, “no,” Mr. Jacobs grew agitated and combative, culminating in him issuing a threat to “ruin [the agent’s] career.”

In the ensuing month, the auditor recorded several discussions with Mr. Jacobs pertaining to his non-deductible expenses. During these discussions, Mr. Jacobs attempted to bribe the auditor in exchange for terminating the examination, saying, “. . . you want a bribe? You want me to pay you?…”

Acting under the direction of law enforcement, the auditor accepted Jacobs’s offer of $5,000 in exchange for a favorable audit letter showing no additional tax for one year and a small refund for the next year. Lo and behold, a check was received by the auditor in the amount of $5,000 a few days later.

Armed with the “smoking gun,” all that was left was for the agent to do was to refer the case to the U.S. Attorney’s Office. With that complete, the indictment was returned in almost record-breaking time.

Don’t be the next Stephen Jacobs. Be sure to consult with an experienced tax attorney if the IRS comes knocking.

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