Newsletter January 2026
Newsletter january 2026
Volume 26, Number 1
Cheshier Tax Resolution Times
The Frontline Defender for the Distressed Taxpayer
County Treasurer Steals $38
Million – On Homes, Ranches and
20 Cars – Gets 10 Years in Jail!
Elizabeth Gutfahr, the former Santa Cruz County treasurer, pleaded guilty to
embezzlement by a public official, money laundering, and tax evasion.
Gutfahr served as treasurer from 2012 through 2024 and carried out a 10-year fraud scheme where she embezzled and laundered roughly 38.7 million dollars in county funds, primarily out of school and fire district accounts.
She executed 187 wire transfers from county accounts to bank accounts she opened under the names of fake companies that performed no real business. To bypass required safeguards, she used the security token of a subordinate employee, which allowed her to initiate and approve the transfers herself. She then falsified accounting records, cash reconciliation documents, and investment reports to hide the missing millions.
Gutfahr used the stolen money to purchase real estate, renovate her family ranch, pay expenses tied to her cattle business, and buy at least 20 vehicles. None of the illicit income was reported to the IRS.
She was sentenced to 10 years in prison and ordered to pay 38.7 million dollars in restitution to Santa Cruz County and 13.1 million dollars to the IRS.
Not So Smart Staffing Firm Owner Gets 97 Months in Jail for Diverting 941 Taxes!
The owner of a Dallas staffing firm, Heaven Diaz, was sentenced to 97 months in prison for failing to pay employment taxes.
Between 2015 and 2017, Diaz withheld more than three million dollars in payroll taxes from employees but never remitted the money to the IRS, despite repeated warnings from her accountant and several employees.
She used the funds for personal expenses, including international travel, luxury goods, and $10,000 monthly rent for a home in a prestigious Dallas neighborhood
In addition to the prison sentence, she must pay $799,033.47 in restitution.
“It is said that our taxation system is a voluntary one. Do you remember when you volunteered?”
–Unknown
Construction Worker Tries to Railroad
The IRS
A Wyoming railroad worker, James Alexander, was found guilty of stealing government disability benefits and filing a false income tax return.
After an injury while working for BNSF Railway, Alexander applied for and received total and permanent disability benefits from the U.S. Railroad Retirement Board. Because the program is for railroad employees unable to work in any regular job, Alexander was required to notify the agency if he earned income.
From 2016 through 2024, he worked in construction and failed to report the income. Records show that between January 2016 and August 2023 alone, he earned $330,830 from a construction company.
He was sentenced to 12 months in prison and ordered to pay $409,422.28 in restitution.
Gaming Manager Steals
$24 Million from Tribal Casino
And Evades Taxes – Gets 70 Months!
Michael Houser was found guilty of a sweeping embezzlement and tax fraud scheme that he carried out between 2016 and 2024. As an accounts payable manager for the Muscogee (Creek) Nation Gaming Operations Authority Board, Houser had access to the tribe’s gaming funds—some of which were federal funds—and stole a total of $24,907,436.07.
The Muscogee Nation Gaming Enterprises oversees multiple casino properties across eastern Oklahoma, including the River Spirit Casino Resort in Tulsa, which draws roughly 10,000 guests each day. Houser diverted tribal funds into personal casino accounts in Las Vegas, where he traveled approximately once a month, gambling heavily and receiving extensive amenities and perks reserved for VIPs.
He also used the stolen money to purchase luxury goods, private school tuition, a 2024 Lexus, a 2022 Cadillac, a high-end boat, and investment and savings accounts. He made lavish purchases from casino stores, including at least one Rolex watch and Louis Vuitton merchandise.
Houser did not report the embezzled proceeds as income. In Tax Year 2022 alone, he failed to disclose $7,851,027.28. The IRS estimated a tax loss of $8,205,834.00.
Houser was sentenced to 70 months in prison for theft and 36 months for tax fraud, to be served concurrently. He must pay $17,337,949.50 in restitution to the Muscogee Nation and $8,205,834.00 to the IRS.
Dumb Political Hack Charged With Tax Evasion!
Katherine Buchanan, a former political campaign compliance consultant, was found guilty of embezzling campaign funds and committing tax evasion.
Buchanan spent more than 20 years working for political campaigns and political action committees, including those of Senators Tim Kaine and Mark Warner, and often held the title of Campaign Treasurer.
Between 2020 and 2024, Buchanan used her access to campaign accounts to steal at least $840,000 from the committees she worked for. She diverted campaign or PAC funds to pay her personal credit card bills, used official campaign credit cards for private purchases, and transferred money directly into her personal bank accounts.
She used the stolen funds for a wide range of personal luxuries and expenses, including dining, landscaping services, clothing, a Peloton exercise bike, airline tickets to Italy, concert tickets, chartered yacht tours and legal fees.
In addition to the theft, Buchanan under-reported the income she received between 2017 and 2022, causing the IRS a loss of more than $670,000.
She was sentenced to one year and one day in prison and three years of supervised release. Restitution is yet to be determined.
Dallas Client of the month
Are You My Next Client of the Month?
This month’s Dallas Client of the Month is Claudia Davis
Pecos Client of the month
Are You My Next Client of the Month?
This month’s Pecos Client of the Month is Harral Livestock Company
Double Trouble Tax Evaders
Stephen Hochberg pleaded guilty after being charged in a long-running scheme to evade federal taxes while receiving more than 1.6 million dollars in compensation and benefits.
Beginning in 2014, Hochberg and Charles Katz arranged for Hochberg to be paid off the books while serving as Director of Corporate Services at Katz’s accounting firm and as Chief Operating Officer of Katz’s real estate company. In total, Katz funneled at least $1,668,487 in unreported income to Hochberg and avoided at least $835,105 in taxes.
The scheme provided extensive personal perks to Hochberg, including rent-free housing for Hochberg’s ex-wife, college tuition for his children, and personal expenses charged on corporate credit cards.
In 2008, Hochberg was convicted of eight counts of wire fraud and nine counts of securities fraud. He was sentenced to more than five years in prison and a restitution order of $1,791,500. Hochberg lied about his income from Katz’s firms to avoid paying restitution he still owed to victims of the earlier fraud case.
Hochberg and Katz both face extensive prison sentences and restitution.
Did You Know?
Alabama taxes the sale of illegal drugs. The state requires sellers to have tax stamps on these sales. Those caught without stamps will face jail time for the sale of the drugs as well as prosecution for tax evasion.
Important Upcoming Tax Deadlines
January 15th
4th Quarter Estimated Payments due
February 2nd
Information Return filings – W-2s and 1099s due
March 16th
S Corps and Partnership Business Returns due, also last day to elect S Corp status
We’d Like to Hear From You!
If you have an IRS issue, or just want to refer a friend, relative or client, we’d love to hear from you. We can provide a no-obligation confidential consultation to help you solve your IRS problems.
Irving – Adrienne @ 972-514-1424
Duncanville – Linda @ 469-647-9950
Pecos – Crissy @432-445-4949
Enter Our Trivia Contest for a Chance to Win a
$250 Transferrable Gift Certificate!
Take the Trivia Challenge to win!
Each month, we will give you a new trivia question. The first THREE people who call our
office with the correct answer will win a free $250 reduction on any IRS Resolution service
we provide. Your prize is also transferrable, so use it for yourself, or give it to a family
member or friend. Take your best guess and call Nicole @ 469-647-9950
This month’s question is….
What New Year’s Eve / Day celebration has more than two million people in attendance?
Call Nicole @ 469-647-9950 with your guess
Your IRS Questions Answered Here…
Question: I own a small business and did not file or pay payroll taxes for the last few quarters. I may owe over $100,000 in 941 taxes. What should I do?
Answer: Owing 941 payroll taxes is very different than owing personal 1040 income taxes. Not only can the IRS padlock the doors to your business, but they can also come after you personally, levy your personal bank accounts, confiscate your receivables, and seize your income and real property. Scarier still is that it could turn into a criminal matter. Why? Because the money has already been deducted from your employee’s payroll checks; so, it’s not your money to begin with! The IRS views this as if you stole their money. Payroll tax delinquency is the IRS’s number one enforcement priority.
Acting quickly by getting help NOW greatly improves your chances for a successful resolution. The longer you wait, the more you risk this turning into a criminal matter, where your options are very limited. The IRS has special programs for business owners who have fallen behind on their payroll tax obligations. We can assess your situation and figure out the best way to protect you, take over all dealings with the IRS, and negotiate a resolution. Don’t let them take everything you’ve worked so hard for. Penalties and interest are compounded daily, just like a credit card. Don’t let this balloon out of control. Call us today so we can get you protected! There is a solution!
We at Cheshier Tax Resolution are experts in IRS tax problem resolution and help taxpayers with their IRS Problems every day. We know the “ins and outs” and know how to navigate the IRS maze. There is a solution to EVERY problem. Call us today! Linda @ 469-647-9950 for a FREE, no-obligation confidential consultation!