From the South Carolina Department of Revenue
Jack Molloy and S. Craig Molloy, residents of Beaufort County, were arrested today, each on five counts of income tax evasion.
Jack Molloy failed to file South Carolina Individual Income Tax returns for years 2007 through 2011. During an audit, the defendant did file non-resident South Carolina Individual Income Tax returns for those years, claiming to be a resident of Florida. However, further investigation determined Jack Molloy was a resident of South Carolina. As a result, he failed to report $616,352 in taxable wages and evaded paying $50,128 in state income taxes.
S. Craig Molloy filed South Carolina Individual Income Tax returns for 2008 through 2012. However, the returns filed did not include $846,964 that the defendant received from Island Group Inc. He also claimed expenses on the tax returns which were fraudulent. These offenses resulted in the evasion of $57,499 in state income taxes.
The defendants are currently being held at the Beaufort County Detention Center pending a bond hearing. If convicted, each defendant faces fines up to $10,000 and/or imprisonment up to five years per count.
The South Carolina Department of Revenue is committed to the fair administration of tax laws. By taking enforcement action against noncompliant taxpayers, the Department seeks to prevent unfairly increasing the tax burden on those who do comply.
If you find yourself with income tax or business tax issues, contact our office.