A vinyl window company in Holly, Michigan, apparently didn’t notice when $1.7 million disappeared off its books over a 3-year period. But the IRS noticed when Pamela Blodgett, the company’s controller at the time, somehow inexplicably forgot to mention on her 1040 an increase in her income by coincidentally the same amount.

The IRS came after Ms. Blodgett for $570,000 in back taxes on the embezzled money. The Detroit News has the full story here.

As my somewhat belated Tax Quote of the Month for June, I’m posting this stern reminder from IRS special agent Maurice Aouarte:

“No matter the source of your income, even if it’s stolen or illegal, it remains taxable. IRS Criminal Investigation will vigorously investigate any individual who knowingly and willfully evades his or her tax obligation.” ###