According to a Department of Justice press release, a repeat non-filer recently pleaded guilty to one count of tax evasion. Although continued non-compliance may appear tempting for someone who has fallen behind on their annual tax return obligations, the repercussions begin to stack up and vastly outweigh the steps needed to come back into compliance. If you have failed to file a tax return in the past, it may be in your best interest to contact an experienced tax attorney to discuss your options to get right with the government.
Defendant Fails to File Several Years of Returns
Court documents reveal that Daryl Brown, like most Americans, received taxable income on an annual basis. For a seven-year period beginning in 2009, Brown failed to report his earnings on an individual tax return or pay any federal taxes. In an attempt to prevent the IRS from discovering his non-compliance, Brown used lines of credit and bank accounts that were not in his name to pay for personal expenses. Finally, Brown engaged in the extensive use of money orders, intentionally purchasing them in a way that skirted IRS reporting requirements that may have alerted the Service to his activity. These are all classic elements of the crime of Spies Evasion.
The Department of Justice and the IRS estimate that Brown’s criminal activity resulted in a tax loss of more than $250,000. Sentencing is scheduled for later this year where Brown faces up to five years in a federal prison. Additionally, Brown will likely be sentenced to serve a period of supervised release to commence upon the completion of his physical incarceration. Lastly, Brown will likely be ordered to repay the tax loss that he is responsible for in the form of restitution.
Failing to File a Tax Return: How It Happens and the Repercussions
Each year, millions of Americans fail to file a tax return. Our tax system relies on initial voluntary compliance, followed by the IRS pursuing those who failed to file a tax return. Taxpayers who have either never filed a tax return or those who were once compliant, but stopped filing a tax return for a period of time face the same penalties if the non-compliance is discovered. If criminally convicted of willfully failing to file a tax return, a taxpayer can be sentenced to one year in prison per year that their tax returns went willfully unfiled.
Making Your Way Back into Compliance
Coming back into the tax system involves strategic planning between a taxpayer and their tax attorney. For taxpayers who do not owe any tax despite having not filed a tax return, becoming compliant may be as easy as filing the tax returns that are missing. For those taxpayers who owe tax as a part of their unfiled tax returns, additional strategic planning is required. An experienced tax defense attorney can offer different avenues that are available to come into tax compliance and provide the taxpayer with the benefits and drawbacks of each.
If you are contacted by the IRS about unfiled tax returns, it is important to contact a tax defense lawyer as soon as possible. Many taxpayers believe that they can take on the IRS alone and perhaps talk their way out of it. But many taxpayers fail to appreciate that IRS agents are trained to sniff out the facts and will refer cases to IRS Criminal Investigations if they identify any badges of fraud. Seeking the assistance of experienced tax counsel will help ensure that you do not fall into any traps in your interactions with the IRS. Your tax attorney will be by your side during all interactions with the government to ensure your best chance of success and to give you peace of mind.
Note: the federal and California tax authorities are likely to become much more aggressive regarding non-filers in the wake of the Covid 19 Virus-induced recession/depression that is to come. Work with us to get back into the system while it is still possible to avoid criminal prosecution.
As long as a taxpayer that has willfully committed tax crimes self-reports the tax fraud (including a pattern of non-filed returns) through a domestic or offshore voluntary disclosure before the IRS has started an audit or criminal tax prosecution, the taxpayer can be successfully brought back into tax compliance and receive a nearly guaranteed pass on criminal tax prosecution and simultaneously receive a break on the civil penalties that would otherwise apply. It is imperative that you hire an experienced and reputable tax defense attorney to take you through the voluntary disclosure process. As uniquely qualified and extensively experienced Criminal Tax Defense Tax Attorneys, Kovel CPAs and EAs, our firm provides a one-stop-shop to efficiently achieve the optimal and predictable results. See our Testimonials to see what our clients have to say about us!
See our Non-Filer Q and A Library
See our 2011 OVDI Q and A Library
See our FBAR Compliance and Disclosure Q and A Library
See our Foreign Audit Q and A Library
Contact an Experienced Tax Attorney Today
The tax and accounting professionals at the Tax Law Offices of David W. Klasing have extensive experience representing a diverse group of taxpayers. From individuals to middle-market businesses and beyond, our team of zealous advocates will assist in the development of a strategy to help you reach your specific goals and objectives. Whether you are under a tax examination or are in need of tax planning advice, contact the Tax Law Offices of David W. Klasing today, online or by phone at (800) 681-1295, for a reduced-rate consultation.
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In addition to our staffed main offices in Irvine, the Tax Law Offices of David W. Klasing has unstaffed (conference room only) satellite offices in Los Angeles, San Bernardino, Santa Barbara, Panorama City, Oxnard, San Diego, Bakersfield, San Jose, San Francisco, Oakland, Carlsbad, and Sacramento.
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Will it cost me more to hire the Tax Law Offices of David W. Klasing, whose main office and the vast majority of the firm’s staff is located in Irvine California, but an appointment only Satellite office is close to my location, as opposed to a local company? Absolutely not! See our policies that address this issue here.
