Virginia Man Sentenced to Serve 14 Months in Prison for Tax Evasion
According to local news reports, a Virginia man was recently sentenced to serve 14 months in prison after being convicted of tax evasion. The defendant took multiple steps to conceal his wages in order to artificially lower his taxable income. This story is a good example of what may happen to taxpayers to make attempts to decrease their tax bill (or generate a fraudulent refund) by failing to report the correct amount of taxable income, overstated deductions or claiming credits they are not entitled too. If you have failed to file a tax return for one or more years, or have failed to report all of your wages, overstated deductions or falsely claim credits on your filed tax returns, it is in your best interest to contact an experienced tax defense attorney to work toward coming into compliance.
Note: As long as a taxpayer that has willfully committed tax crimes (potentially including non-filed returns coupled with affirmative evasion of payment) 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 investigation/prosecution, the taxpayer can ordinarily be successfully brought back into tax compliance and receive a nearly guaranteed pass on criminal tax prosecution and simultaneously often receive a break on the civil penalties that would otherwise apply.
It is imperative that you hire an experienced and reputable criminal tax defense attorney to take you through the voluntary disclosure process. Only an Attorney has the Attorney-Client Privilege and Work Product Privileges that will prevent the very professional that you hire from being potentially being forced to become a witness against you, especially where they prepared the returns that need to be amended, in a subsequent criminal tax audit, investigation or prosecution.
Moreover, only an Attorney can enter you into a voluntary disclosure without engaging in the unauthorized practice of law (a crime in itself). Only an Attorney trained in Criminal Tax Defense fully understands the risks and rewards involved in voluntary disclosures and how to protect you if you do not qualify for voluntary disclosure.
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 that simultaneously protect your liberty and your net worth. See our Testimonials to see what our clients have to say about us!
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Defendant Intentionally Omitted Income on His Tax Return
Federal investigators alleged that Vosean Smyre, of Richmond, Virginia significantly underreported income earned between 2012 and 2015. During those years, Smyre worked at various organizations and generated substantial revenue from each. Such organizations were largely connected with youth mentoring services.
The IRS determined that in the four-year period in question, Smyre underreported his income or failed to file a tax return altogether. In order to further conceal his income, the defendant paid his personal expenses from business bank accounts related to the organizations that he worked for. Finally, Smyre made direct cash payments to himself from some of the business accounts belonging to the organizations that he worked with. In addition to serving his 14-month prison sentence, Smyre was ordered to pay restitution of over $360,000 to the IRS, representing the tax loss caused by his deceitful actions.
Coming into Compliance Sooner Rather Than Later
The defendant in the story above failed to truthfully report all his income. Whether taxpayers underreport income or overstate wages, the IRS has implemented complex data systems that scan tax returns and make inferences about the probability that intentional tax wrongdoing has occurred. Thus, for many taxpayers engaging in tax fraud, it is not a matter of if they will be caught, but when.
Working with an experienced tax defense attorney, taxpayers can lay out the facts of their particular case and develop a list of potential methods to come into tax compliance. Once a strategy is decided upon, your tax defense lawyer will be your buffer and will represent you in any interactions with the IRS. Dealing with the IRS can be an anxiety-filled ordeal, but it does not have to be. You do not need to face off against the IRS alone.
We Are Here for You
Regardless of your business or estate needs, the professionals at the Tax Law Offices of David W. Klasing are here for you. We are open for business and our team will help ensure that your business is too. Contact the Law Offices of David W. Klasing today to discuss your business with one of our professionals.
In addition to our main office 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. During the COVID-19 pandemic, our staff are working from home, but have full virtual meeting capability.
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