A Florida real estate agent self-dubbed the “Land Man” was sentenced to 14 months in prison for failing to file his income tax returns during a five-year period.
Sedita Charles Cayson was found guilty last month by a federal judge of five counts of willfully failing to file his income tax returns during a five-year period. In the case that led to his conviction, Cayson intentionally failed to file his income tax returns for a period when he earned real estate sales commissions averaging over $150,000 per year.
Furthermore, since 2017 Cayson instructed his real estate broker to split his commission checks into amounts that were less than $10,000, the majority of which Cayson cashed at the bank immediately upon receiving them.
Cayson was also sentenced to one year of supervision following his release from prison and was ordered to pay $158,840 in restitution to the IRS and $34,755 in prosecution.
Why would a broker go along with this scheme. Hopefully the broker was sanctioned in some way,
Broker is responsible for agents. If Broker cut separate checks for one transaction Broker committed crime also.
Having taught tax law and real estate law, and with a degree in accounting, and having been a real estate agent for 34 years, to state that the broker committed a crime also by cutting separate checks is wholly wrong, with one exception.
Per a cursory search of Florida law. There are no requirements for one check or multiple checks of a commission, but there are requirements for reporting for funds for a 1099 which we all know.
For instance, if a broker underpaid on a commission and that check was deposited, the broker would have to issue another check.
To allege the broker is “in on it” would constitute an allegation conspiracy to defraud. As that is a felony, there would need to be evidence beyond a reasonable doubt of mal intent of the broker to defraud the Treasury.
What would need to be proven is that the broker had knowledge the issuance of multiple checks was specifically to aid the agent in his illegal avoidance of tax payments.
Also, as a licensed real estate agent, I comply with my code of ethics and advise any party to seek legal counsel as I only share my insights for with a complete lack of humility are based on a tremendously long time of experience.
Agree! We are all responsible for ourselves. It’s not the brokers’s responsibility to babysit his agent when it comes to his personal tax debt.
James, you must be an attorney so I won’t argue law with you.
I’ve also been a tax attorney and a real estate broker in Los Angeles and it’s pretty clear to me that the manager knew what his agent was up to in requesting that his checks be cut into several checks of under $10,000 each. It is common knowledge that banks have government reporting responsibilities for a series of checks over $10,000.