Maryland Store Owner Learns the Hard Way: The House Always Wins (Except the IRS!)

In a shocking twist that surprises absolutely no one who’s ever dealt with the IRS, a Maryland man has pleaded guilty to tax evasion after forgetting to mention $2.2 million in cash he took from his store. Spoiler alert: The IRS noticed.

William M. Bundy, the proud owner of Bab’s Inc. in District Heights, ran his retail store the old-fashioned way—cash only, no paper trail, and apparently, no tax returns that made any sense. While most business owners stress over sales reports, Bundy allegedly treated his cash register like a personal ATM, withdrawing millions without so much as a courtesy nod to Uncle Sam.

And what did he do with all that untaxed money? Did he invest? Buy a yacht? Secure his retirement? Nope—he took it straight to the casino. Over five years, Bundy wagered and lost over $3 million at two Maryland-area casinos, proving once again that gambling is not a retirement plan. But hey, at least he was consistent—he lost money at the slots and at tax evasion.

Now, with a $672,558 tax bill and a sentencing date set for February 21, 2025, Bundy could be trading his cash-only lifestyle for a federal payment plan. He faces up to five years in prison, plus supervised release, restitution, and penalties. And unlike a casino, there’s no "house edge" when it comes to the IRS—because the IRS is the house.

So How Did the IRS Catch Him?

You might be wondering, How does a guy pull off something this bold for so long before the IRS comes crashing in? Well, here’s how the tax detectives put the pieces together:

1. Cash-Only Business? That’s an IRS Magnet 🎯

Bab’s Inc. only accepted cash, which is basically a flashing neon sign for tax auditors. Cash-based businesses get extra attention because they’re prime candidates for underreporting income.

2. Casinos Keep Receipts 🎰

Bundy wasn’t just playing blackjack—he was playing himself. Casinos are required to report large transactions to the IRS via Currency Transaction Reports (CTRs) and Suspicious Activity Reports (SARs). When you’re moving millions through a casino but telling the IRS you make minimum wage, red flags start flying.

3. Bank Records Don’t Lie 🏦

IRS Criminal Investigation (IRS-CI) agents likely checked Bundy’s banking activity. Unexplained cash deposits? Huge ATM withdrawals? That’s all the IRS needs to start an audit party.

4. Lifestyle vs. Reported Income 🤔

Bundy was living like a high roller while reporting what could barely cover gas money. The IRS loves a good Lifestyle Audit, where they compare what you spend to what you report. If your tax return says "broke" but you’re out here making it rain, expect a call.

5. The Snitch Factor 🐀

IRS auditors didn’t just wake up one morning and say, Let’s check out Bab’s Inc. Someone—an employee, a competitor, or maybe even a jilted ex—might have dropped a whistleblower tip, which can earn them a cut of whatever taxes get recovered. Betrayal never pays… except when the IRS is involved.

6. Payroll vs. Business Revenue Discrepancy 💰

If Bundy reported normal wages while his business raked in cash, the numbers wouldn't add up. The IRS loves math, and this equation wasn’t mathing.

7. State & Federal Coordination 🏛️

Maryland tax authorities may have noticed something fishy in state filings and handed the case over to the feds. When state tax auditors and the IRS team up, it’s game over.

The IRS Always Wins

Bundy thought he was outsmarting the system, but let’s be real—the IRS has been playing this game since before casinos even existed. Now, instead of rolling dice, he’s rolling into federal sentencing.

Moral of the story? If you’re feeling lucky, try the lottery. Because the only thing worse than losing at the casino is losing to the IRS and the casino at the same time.