According to a Department of Justice press release, a Utah man was recently sentenced to serve 51 months in federal prison after being convicted of tax evasion and corruptly endeavoring to obstruct the IRS. This story should serve as a reminder to taxpayers with outstanding tax debt or unfiled tax returns that the civil and criminal penalties related to tax non-compliance can be severe. If you have failed to file a tax return for one or more years or have taken a position on a tax return that could not be supported upon an IRS or state tax authority audit, eggshell audit, reverse eggshell audit, or criminal tax investigation, it is in your best interest to contact an experienced tax lawyer to determine your best route back into federal or state tax compliance without facing criminal prosecution.
Defendant Sent Several Bad Checks to the IRS in Attempt to Extinguish Tax Debt
Court records reveal that Louis Hansen, of Orem, Utah, had incurred substantial tax debt in the related to several tax years prior to 2012. In March 2012, the defendant sent a check to the IRS in the amount of $342,669, purporting to be paying off back taxes, penalties, and interest. Unfortunately, the check sent to the IRS was drawn on a bank that the defendant knew to have been closed. After the IRS was unsuccessful in cashing the first check the defendant provided, he presented 10 more checks in the amount of $425,000 each to several different IRS offices around the country.
In addition to his 51-month prison sentence, Hansen was ordered to serve three years of supervised release to commence upon the completion of his physical incarceration. Additionally, the defendant was ordered to pay $342,699 in restitution to the IRS representing the tax loss that he caused.
Consulting a Seasoned Tax Attorney to Come into Tax Compliance.
Although most Americans do not attempt to pass phony checks to the IRS, many taxpayers have either outstanding tax debt or have unfiled tax returns. One of the best strategies a taxpayer can employ when dealing with a large amount of tax debt or the potential for penalties related to unfiled tax returns is to consult with an experienced tax defense attorney. Together, you will determine the pertinent facts and circumstances of your case. Next, you will jointly decide on a path forward to bring you into compliance while keeping your physical and financial freedom top of mind. There are various programs established by the IRS to help taxpayers that have fallen behind on payments or the filing of tax returns. Your tax attorney will help you determine the best plan for you. While you are being represented by a seasoned tax lawyer, you will not have to go up against the IRS or the Income Tax Division of the U.S. Department of Justice alone.
Note: As long as a taxpayer that has willfully committed tax crimes (potentially including non-filed foreign information returns coupled with affirmative evasion of U.S. income tax on offshore income) self-reports the tax fraud (including a pattern of non-filed returns) through a domestic or offshore voluntary disclosurebefore 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 a voluntary disclosure.
As uniquely qualified and extensively experienced Criminal Tax Defense Tax Attorneys, KovelCPAs 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!
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.
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Questions and Answers on Unfiled Back Taxes
- What are the common issues that non-filers face?
- Risk of audit after filing delinquent prior year returns
- Can substitute return deficiency be discharge in bankruptcy
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- Do I file every delinquent return for each missing year?
- How does the IRS identify non-filers?
- How important is it to the government that I didn’t file?
- Delinquent tax return criminal prosecution likelihood
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- What happens after enforcement action has begun?
- Should I use an attorney, EA or a CPA to represent me when I re-enter the tax system?
- Why do people drop out of the tax system?
- What happens after the IRS identifies me as a non-filer?
- IRS has not previously filed substitute returns
- Tax attorney representation when re-entering tax system
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- What should I do to re-enter the tax system?
- Can Law Office of David W. Klasing help me re-enter system?
- Will tax collection taken by authorities affect my credit
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Questions and Answers About Tax Relief and Tax Resolution
- What to do if there is an IRS discrepancy in amounts owed?
- What are IRS allowable expenses?
- Does the IRS allow other expenses as necessary expenses?
- What do I do if I owe payroll taxes?
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Questions and Answers on Offer in Compromise
- Do I need to provide financials if the IRS requests them?
- How does the IRS calculate my income?
- David W. Klasing Offer in Compromise help
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- What exactly is an Offer in Compromise?
- How exactly do I apply for an Offer in Compromise?
- How to protect my Offer in Compromise from being revoked
- Prerequisites to obtaining an Offer in Compromise
- Form 433-A (OIC) Collection Information Statement with OIC
- When will the IRS entertain an Offer in Compromise?
- What are the ways Offers in Compromise can be paid
- Objectives of the IRS Offer in Compromise Program
- Will Offer in Compromise affect criminal tax liability?
- Offer in Compromise includes liabilities prior to marriage
- What payments are required with an Offer in Compromise
- Will an Offer in Compromise affect installment agreement
- Offer in Compromise effect on statute of limitations
- Filing Offer in Compromise affect collection actions?
- How will I know if my Offer in Compromise is accepted?
- What happens when IRS finds something wrong with my offer
- Why was my offer found to be unacceptable?
- Is an accepted Offer in Compromise public record?
- What legal effects does entering into an Offer in Compromise have on a taxpayer?
Questions and Answers on Tax Liens, Levys and Tax Garnishments
- Spouses tax liability at life and death
- 2016 Changes to IRS Collections
- What Do You Do If You Owe Money to the IRS and You Cannot Pay the Balance Due Right Away?
- How long can the IRS collect on a past due debt?
- Do You have Unfiled Personal Income California Tax Returns?
- What are some events that can suspend or extend the collection statute allowing the IRS more time to collect on an outstanding tax debt?
- What happens when the collection statute expires?
- How much time does the CA Franchise Tax Board have to collect on an outstanding tax debt?
- Frivolous Collection Due Process Hearing Requests
- IRS Collection Notices
- What do you do if you owe sales tax to the CA Board of Equalization?
- When should I file a Collection Appeal Protest (CAP)?
- What are the Differences between a CDP Form 12153 and Form 9423
- My Employer Received Form 668-W, Notice of Wage Garnishment
- Can the IRS levy my Social Security benefits?
- How to release the wage levy?
- What is a federal tax lien?
- What is the effect of a federal tax lien?
- Can a taxpayer challenge the filing of a federal tax lien?
- How do I get a tax lien removed or released?
- What do I do if the IRS issues a bank levy?
- How to Release a Bank Levy?
- What if I am an employer and the levy attached to payroll?
- What additional information does the IRS need from me?
- What is a Collection Due Process (CDP) Hearing?
- What is an Equivalency Hearing?
- I received a notice from the IRS, what do I do?
- I moved and never received notices from the IRS
