A lawsuit filed by Joanne Gilmore alleges her longtime accountant failed to advise her that she could file separate tax returns, a decision she claims could have protected her from IRS collection actions tied to her husband’s unpaid tax liabilities that landed him with a criminal conviction and 1 year prison sentence.
The wife of Ocean County Republican Chairman George Gilmore filed a lawsuit against a former accountant and a major accounting firm, alleging professional negligence that she claims resulted in years of IRS collection efforts, tax liens, and financial losses. That lawsuit filed in 2022 is still ongoing within the New Jersey courts.
Gilmore is being represented by Michael Lavery, a former New Jersey GOP chairman, and reportedly a nephew of the Gilmores.
Joanne Gilmore of Toms River filed the lawsuit against certified public accountant Robert H. Hutchins and accounting firm Withum Smith & Brown PC in Ocean County Superior Court. The complaint alleges the defendants failed to advise her that she had the option to file separate federal and state tax returns rather than filing jointly with her husband, George Gilmore.
According to the lawsuit, that omission ultimately exposed her to IRS collection actions related to substantial unpaid tax obligations associated with the couple’s joint returns.
The latest brief filing comes at a politically significant time for Ocean County Republicans. George Gilmore is expected to seek another term as chairman of the Ocean County Republican Organization when party members gather June 30 to elect leadership for the next four years.
Lawsuit focuses on tax returns filed between 2013 and 2015
According to the complaint, Hutchins prepared tax returns for George and Joanne Gilmore for years before joining Withum in 2014 and continued handling their tax matters after joining the accounting firm.
The lawsuit states that Joanne and George Gilmore filed joint federal and state income tax returns for tax years 2013, 2014, and 2015. During those years, the complaint alleges large federal tax balances remained unpaid.
According to the lawsuit, the unpaid federal tax obligations totaled approximately:
• $493,526 for 2013
• $321,470 for 2014
• $311,287 for 2015
The complaint alleges Hutchins knew those balances remained outstanding and was aware that the Internal Revenue Service had initiated collection proceedings and filed liens against both George and Joanne Gilmore.
The lawsuit further claims Hutchins knew the couple had experienced ongoing tax collection issues dating back years before the returns at issue were filed.
Plaintiff says she relied on others to handle finances
A central theme of the lawsuit is Joanne Gilmore’s claim that she had limited involvement in preparing the returns.
According to the complaint, George Gilmore handled the financial information provided to the accountant, while Joanne Gilmore was not privy to much of the couple’s financial information despite signing the joint returns.
The lawsuit states she had “little contact” with Hutchins or other representatives of Withum concerning preparation of the returns.
According to the filing, Joanne Gilmore earned significantly less income than her husband during the years in question. While George Gilmore allegedly earned more than $1 million annually in some years, Joanne Gilmore worked in his law office and generated comparatively modest earnings.
The lawsuit contends that because of her lower income level, filing separate returns could have dramatically changed her tax situation.
Claim centers on separate filing option
The most significant allegation in the lawsuit is that Joanne Gilmore was never advised she could file separate tax returns.
According to the complaint, had she filed separately, the IRS allegedly would not have been able to pursue collection actions against her for tax liabilities tied primarily to her husband’s income.
The lawsuit claims that based on her own income and tax withholdings, she would have been capable of satisfying any taxes owed individually and avoiding the liens and collection efforts that later targeted her assets.
“Plaintiff was never advised by Defendants Hutchins and Withum or anyone else associated with Defendant Withum that she had the right to file a separate return,” the complaint states.
The filing further alleges Hutchins “knew or should have known” that filing separately would have protected her from many of the consequences she ultimately faced.
IRS allegedly seized proceeds from property sales
According to the lawsuit, IRS collection efforts eventually affected Joanne Gilmore directly.
The complaint alleges that federal tax liens were filed against property owned by both Joanne and George Gilmore and that proceeds from property sales were seized to satisfy outstanding tax obligations, penalties, and interest.
The lawsuit does not specify the total amount of losses allegedly sustained by Joanne Gilmore but seeks compensatory damages and other relief from the defendants.
The complaint also alleges Joanne Gilmore did not learn of the purported accounting errors until consulting another accountant in 2019.
According to the lawsuit, that accountant advised her that filing separate returns could have protected her from collection actions associated with her husband’s tax liabilities.
George Gilmore’s tax case drew national attention
The lawsuit is likely to attract additional attention because of George Gilmore’s prominent role in New Jersey politics.
Gilmore has long been considered one of the most influential Republican political figures in Ocean County and throughout New Jersey. As chairman of the Ocean County Republican Organization, he oversees one of the state’s largest and most powerful county political organizations.
In 2019, Gilmore was convicted in federal court on tax-related charges stemming from the operation of his law practice. He was sentenced to a year and a day in federal prison.
Following the conviction, Gilmore resigned as chairman of the Ocean County Republican Organization and stepped down from the Ocean County Board of Elections.
His legal troubles drew statewide and national attention because of his longstanding influence within Republican politics and his connections to prominent elected officials.
Later, President Donald Trump granted Gilmore a full presidential pardon.
Following that pardon, Gilmore returned to leadership positions within Ocean County Republican politics and ultimately regained both his role as county chairman and his position on the Ocean County Board of Elections.
The new lawsuit does not name George Gilmore as a defendant, nor does it challenge his criminal case. However, the allegations concern the same general period during which the Gilmores faced substantial federal tax issues.
Accountant denies the allegations
The accountants had sought records pertaining to Mr. Gilmore’s federal tax case and conviction, but allegedly, the Gilmore’s ignored the requests. Those documents were later obtained via a subpoena.
The defendants have strongly disputed Joanne Gilmore’s claims and argue that records from George Gilmore’s federal criminal tax case are highly relevant to the lawsuit. In court filings, attorneys for accountant Robert Hutchins and Withum Smith+Brown contend that testimony from the criminal trial may shed light on what Joanne Gilmore knew about the couple’s tax liabilities, IRS liens, and repeated warnings from federal authorities years before she says she became aware of the problems.
Defense attorneys argue that multiple witnesses in the malpractice case—including Hutchins, other accountants, and IRS officials—also testified during George Gilmore’s criminal proceedings.
They contend it would be unfair for the Gilmores to have access to that testimony while preventing the defendants from obtaining the same records. The filing also notes that Joanne Gilmore worked at her husband’s law firm during the years in question and suggests evidence from the criminal case could be relevant to determining what she knew about unpaid tax obligations and when she learned of them.
The defendants further argue that Joanne Gilmore’s claim that she did not discover the alleged accounting failures until 2019 should be closely examined. According to the filing, federal prosecutors alleged during George Gilmore’s criminal case that the couple acknowledged owing hundreds of thousands of dollars in taxes for 2013, 2014, and 2015 while receiving IRS notices and collection warnings. The accounting firm maintains it is entitled to obtain documents and testimony from the criminal case as part of its defense against the malpractice claims.
Multiple claims asserted against defendants
Joanne Gilmore’s lawsuit includes claims for negligence, professional malpractice, breach of fiduciary duty, breach of contract, and vicarious liability against the accounting firm.
The complaint alleges the defendants failed to provide competent professional advice that would have protected her interests and assets.
The lawsuit seeks compensatory and consequential damages, legal costs, and other relief. Joanne Gilmore has requested a jury trial.
The allegations contained in the complaint are claims made by the plaintiff and have not been proven in court. The defendants will have an opportunity to respond to the allegations through the legal process.
Key Points
• Joanne Gilmore has sued accountant Robert H. Hutchins and Withum Smith & Brown, alleging they failed to advise her to file separate tax returns.
• The lawsuit claims IRS liens and collection actions resulted in financial losses, including proceeds seized from property sales.
• The case comes days before Ocean County Republicans are expected to vote on whether George Gilmore will continue serving as county chairman for another four-year term.