In Episode 21 of Final Notice, Jason Carr breaks down the case of Eric Brian Rosenberg, a Mississippi publisher and former congressional candidate who used a technique called “check churning” to keep the IRS from collecting over $2 million in back taxes, all while spending more than $1 million at casinos.
Show Notes:
Eric Brian Rosenberg, publicly known as “E. Brian Rose,” operated GC Wire, a digital news publication on the Mississippi Gulf Coast, and ran for Congress in 2018. He owed federal income taxes for calendar years 2004 through 2016. When the IRS assigned a revenue officer to collect in April 2016, Rosenberg did not negotiate. Instead, he began draining his bank account by repeatedly purchasing cashier’s checks, holding them, and redepositing them only when he needed cash, a cycle designed to keep his balance near zero so IRS levies would come back empty. In 2021, he escalated by forming a corporation, opening a nominee bank account, and continuing the same check churning through the corporate entity without disclosing it to the IRS.
During this entire period, Rosenberg spent more than $1 million gambling at casinos.
On August 19, 2026, Rosenberg pleaded guilty to one count of tax evasion under 26 U.S.C. § 7201. Prosecutors recommended a sentence of two years in prison, three years of probation, and $2,317,528.91 in restitution. Sentencing is scheduled for December 16, 2026.
Jason explains the critical distinction between evasion of assessment and evasion of payment, how “check churning” works to defeat IRS bank levies, why casino spending is both lifestyle evidence and a disqualifier for civil resolution, and what Rosenberg should have done the moment the revenue officer showed up: engage, disclose, and negotiate.
Key Takeaways
- Tax evasion under Section 7201 covers two types of conduct: evasion of assessment (hiding income) and evasion of payment (hiding assets from collection). Both carry up to five years in prison per count.
- “Check churning” is a specific technique to defeat IRS bank levies by keeping account balances near zero through repeated cashier’s check purchases.
- Simply not paying taxes is not criminal. The government must prove the taxpayer took affirmative steps to prevent collection.
- Opening nominee accounts and failing to disclose them to the IRS are classic affirmative acts of evasion.
- Spending over $1 million at casinos while owing $2 million to the IRS destroys any viable civil resolution and provides powerful evidence of willfulness.
- When the IRS assigns a revenue officer, the time to act is immediately: file missing returns, prepare accurate financial disclosures, and negotiate a resolution through counsel.
- Attorney-client privilege is critical in collection cases. Statements made to the IRS or to non-attorney advisors are not protected.
Resources Mentioned
DOJ guilty plea announcement (Aug. 20, 2026): https://www.justice.gov/opa/pr/mississippi-man-pleads-guilty-evading-2m-taxes
26 U.S.C. § 7201 (Attempt to evade or defeat tax)
IRS Form 433-A (Collection Information Statement for Wage Earners and Self-Employed Individuals): https://www.irs.gov/forms-pubs/about-form-433-a
IRS Form 433-B (Collection Information Statement for Businesses): https://www.irs.gov/forms-pubs/about-form-433-b
IRS Form 656 (Offer in Compromise): https://www.irs.gov/forms-pubs/about-form-656
The Law Office of Jason Carr, PLLC: https://carrtaxlaw.com