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Man Guilty in Gambling Case Serves Time, Then Gets IRS Bill

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Imagine that you plea out a criminal case and believe all your legal problems would end with the plea, then imagine getting hit with a $1 million tax bill after you serve your time.

That is what happened to a Dothan, Alabama, man. He plead guilty to illegal gambling charges back in 1999. The prison term was fifteen months. Tim Reeves believed at the time that he was pleading out everything and that no legal trouble would follow him once he served his sentence.

Now Reeves and his attorneys are claiming that the government broke their own deal by sending him a tax bill for the time he was running the illegal gambling operation.

"My whole deal in settling all of this was that it was going to all go away," said reeves, "But we're still here nine years later?"

A Federal judge ruled that Reeves is still responsible for the bill and that the plea agreement he made had nothing to do with money he owed the IRS.

The breakdown of the money Reeves owes is as follows, $335,000 in Federal excise taxes, $117,250 in civil fraud penalties, and interest on those two totals that has brought the total over $1 million, according to Reeves.

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