News came out last week that chiropractor Stephen Jacobs of Lowell, MA is in hot water with the feds.  Dr. Jacobs allegedly paid an IRS auditor $5,000 in cash to ignore two deductions he improperly took on this 2011 income tax form.

These deductions, allegedly, were in fact payments Jacobs made to two different women because he touched them inappropriately during medical treatments during 2011 and 2012.

Mr. Jacobs was charged under 18 U.S.C. 201 (bribery of public officials).

Interestingly, the improper deductions were for two payments of $5,000 to the women – so a total of $10,000. The highest tax rate in this time frame was 35%.  So he was looking at an additional $3,500 in tax.  This was less than what he paid the IRS agent!

Obviously, Dr. Jacobs was not thinking very clearly.  Sometimes it is better just to take your medicine.

Now he is looking at a prison sentence of up to 15 years and a fine of $15,000. Additionally, he is probably looking at losing his license to practice as a chiropractor.

But if the allegations of “inappropriate touching” are true, then it is for the best.

There are also other laws that Mr. Jacobs probably violated – like IRC Section 7212 (attempt to interfere with the administration of tax laws).

Whenever you have a matter before the IRS or any governmental organization it is vital to get competent help.  People like Dr. Jacobs get themselves into trouble unnecessarily by being pennywise and pound foolish.