IRS says cats and dogs can’t be corporate officers

September 18, 2014

Yes, we know you love your pet as a family member. And yes, we know your animal is the smartest furry creature in the word.

Business Cat via BajirooBut no, your cat or dog is not talented enough to run a company that you created.

That, however, is what a Colorado couple tried. Now they're paying the price.

Cat and dog years of tax evasion: Two years ago, Mathew and Sandra Zuckerman of Woody Creek, Colo., were indicted for a variety of alleged schemes to defraud the Internal Revenue Service.

Earlier this year, the couple entered guilty pleas in connection with some of the federal tax charges.

Mr. Zuckerman, 70, acknowledged to a U.S. District Court judge in February that he committed one count of income tax evasion. Mrs. Zuckerman, 67, pleaded guilty three months later to three counts of willful failure to pay income taxes.

Pets on board: The pet ploy, according to the Justice Department, took place in 1999.

That year, say federal investigators, the Zuckermans sought to avoid IRS liens by transferring the deed to their $1.2 million Rocky Mountain residence to Hyperpanel University, Inc., a Nevada corporation.

A cat and dog were among the officers and directors listed as running Hyperpanel in documents filed with the Secretary of State, according to the DoJ.

This week, the Zuckermans found out what their animal tax antics will cost them.

Zuckerman was sentenced to 24 months in federal prison and ordered to pay the IRS $693,706 in income taxes. His wife was sentenced to three years of probation and ordered to repay $112,511.

There's no word as to whether pets will be granted prison visitation rights.

You also might find these items of interest:

Share:

The More Tax Posts tab at the top of this page will take you to, well, more tax posts. You also can search below for a tax topic. 

Latest Posts
6 tax moves to consider this June

June 3, 2026

Definitely take a break this June. But taxes don’t take vacations. So, you also should…

Read More
Tax Season 2026 Continues!

We made it. Tax Day 2025 is finally over. For most of us. When the filing season started on Jan. 26, millions who were expecting refunds filed immediately. Most of us got our returns to the Internal Revenue Service by April 15. But plenty of taxpayers also got extensions. They are looking at an Oct. 15 filing deadline.

Those procrastinating filers aren’t a problem. In fact, the IRS appreciates taxpayers who take time to fill out their 1040 forms correctly. It also is grateful that tax submissions are spread out a bit, especially now that the IRS is a leaner agency. Processing returns is easier when they arrive throughout the year instead of in massive bunches.

But enough about Uncle Sam’s tax collection issues. The focus now is on all y’all who filed for extensions, giving you another six months to complete your return. Since your new mid-October due date will be here before you know it, let’s get started now on meeting it.

The ol’ blog is here to help you finish up your extended Form 1040. You can start with January’s tax tips page, which has links to the rest of the year’s tips by-month collections. You also can peruse various tax categories for more tailored advice by clicking on the More Tax Posts drop-down menu at the top of this (and every) page.

And to make sure you don’t miss your new filing deadline, the count-down clock below will let you know just how much time you to file by Oct. 15. At the latest.e. (Note: I’m in the Central Time Zone, so adjust accordingly for where you live.)

Comments