Recently, a former director of a notable defense contractor pled guilty in federal court to charges of tax evasion stemming from personal returns over a ten-year period. The allegations suggest that the defendant intentionally did not report all the income he earned over consecutive years.
Court documents show that the plea comes as part of an arrangement between the defendant and the prosecution. We do not know the details of this agreement and likely will not until sentencing follows. While plea deals may be a useful tool in some circumstances, individuals facing criminal tax charges should heavily consider all their options with the help of a dual licensed Criminal Tax Defense Attorney & CPA before making any sort of deal.
The dual-licensed Tax Attorneys and CPAs at the Tax Law Offices of David W. Klasing have years of experience battling the IRS. With our help, you may be able to defend against existing criminal tax charges or even prevent them from being pursued in the first place. To find out more, call us at (800) 681-1295 or better yet, book a reduce rate initial consultation HERE.
Former Defense Contractor Employee Failed to Report Over $1.8 Million in Income
On Wednesday, February 16, Charles D. Squires pled guilty in federal court in the District of Columbia to tax evasion charges. Squires, the former director of operations and chief executive officer for a defense contractor that did business with the United States Department of Defense, was accused of failing to report all of the income he received from his employer over several years.
The indictment alleged that Squires withheld information about certain parts of his compensation packages spanning several taxable years from 2010 through 2019. The total amount that Squires allegedly concealed from the government was estimated to be over $1.8 million. This figure translates to roughly $660,000 in lost tax revenue to the federal government.
According to court documents, Squires pled guilty to one charge of tax evasion as part of a plea deal. Squires will face sentencing on these charges at a later date. Sentencing guidelines indicate that the government could pursue up to five years of prison time, on top of supervised release, restitution, and additional monetary penalties.
Impact of J5 on the Squires Tax Evasion Case
According to the IRS’ announcement of the plea via press release, the IRS’ Criminal Investigations Division (IRS-CI) was assisted in the investigation by the Joint Chiefs of Global Tax Enforcement (J5). The J5 is a cooperative effort between the tax authorities of the United States, Australia, Canada, the Netherlands, and the United Kingdom.
James Lee, the head of the IRS-CI, touted the plea as a victory for the J5, as it was a “truly international investigation.” Lee went further to say that he expects more successes from the J5 in the future. As Lee put it, “Criminals should be worried – this case is an example of what can happen when we all work together.”
The federal government has recently shown an increased appetite for the investigation and prosecution of illicit tax schemes that go outside the country’s borders. This cooperative effort may aid them in their ability to target overseas assets that taxpayers had failed to report in previous years. As we can tell from the recent Squires case, this effort can go back multiple years to find noncompliance.
The best way to prepare your defenses against an increasingly aggressive IRS-CI seeking out past noncompliance is to obtain competent and resourceful tax law assistance from the dual-licensed Tax Attorneys and CPAs at the Tax Law Offices of David W. Klasing.
How Does a Plea Deal Work in Criminal Tax Cases?
In many cases, taxpayers who face charges of tax evasion or other criminal tax offenses will end up agreeing to a plea deal. People facing tax charges may receive favorable sentencing recommendations by accepting a plea arrangement. The government may drop other charges in exchange for the defendant pleading guilty to one or two. In other cases, the defendant may plead guilty to a lesser offense than the one with which they were initially charged.
For these reasons, plea deals may benefit some in certain situations. However, before rushing to accept the first plea deal that comes through the door, you should be aware of some critical information.
You should first consider why the government is offering the plea deal. Plea deals save the government the time and expense associated with a criminal trial. They also secure a conviction, which looks good in a press release. But these may not be the only reasons why the prosecutor offers a deal in every case. To successfully prosecute a defendant for criminal tax offenses, the government must prove their case “beyond a reasonable doubt.” This is a substantial burden to meet, and in many cases, the government may be concerned that they have not gathered enough evidence to meet it.
If you agree to a plea deal wherein the prosecutor agrees to recommend lighter sentencing, the recommendation is all that you get. The prosecutor’s recommendation, while influential, is not binding on the court. The judge is free to sentence the defendant as they see fit within the statutory guidelines. Therefore, it is possible that you could agree to plead guilty without reaping any of the benefits of the agreement.
You are not obligated to accept the first plea agreement offer that you receive. Never sign or agree to anything without first having your tax attorney consider the offer on the table and advise you of the strategy that will serve your best interests.
Get Criminal Tax Defense Help from the Tax Law Offices of David W. Klasing
To hear about our dual-licensed Tax Attorneys and CPAs’ vigorous criminal tax defense services, call our offices today at (800) 681-1295 or better yet, book a reduced rate initial consultation HERE.
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!
Protect Yourself from IRS and California Tax Evasion Charges with the Help of the Tax Law Offices of David W. Klasing
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 defense attorney to determine your best route back into federal or state tax compliance without facing criminal prosecution.
To hear more about our services and how we can help you with your tax situation please book a reduced rate initial consultation by calling (800) 681-1295 or better yet schedule online HERE.
More Commonly Asked Tax Audit Questions
- How should Tax Audits be Handled by Criminal Tax Counsel?
- How to survive audit when I cheated on return being audited
- What is an eggshell audit?
- What is a reverse egg shell audit?
- Why is a reverse egg shell audit dangerous for a taxpayer?
- Warning signs of a criminal referral from an IRS audit
- Effective tax defense counsels goals in an egg shell audit?
- How are the 4 goals and outcomes 1 and 2 best obtained?
- What are the possible outcomes of an egg shell audit?
- Is it my right to know why I was selected for examination?
- What can I do to prepare for an audit?
- What is an IRS civil examination?
- How IRS decides which tax returns are audited
- What are my appeal options if I disagree with IRS?
- What are my basic taxpayer rights if the IRS audits me?
- Options if I am unable to pay at the conclusion of audit
- What a 30 or 90-Day Letter from the IRS means
- What is involved with appealing disagreements?
- Rights to disagree with IRS tax auditor’s findings
- Can I stop the IRS from repeatedly auditing me?
- Can I have the examination transferred to another area?
- Can I record my IRS interview and is it a good idea?
- How many years of returns are at risk during an audit?
- Common reasons for the IRS to conduct a tax audit
- How to avoid negative consequences from an IRS interview
- Have to agree to interview by taxing authority directly?
- Are all audits the same?
- What should I do if the IRS is investigating me?
- What if I don’t respond to a taxing authority audit notice
- Your rights during an IRS tax audit
- Risks of attending an IRS audit without a tax lawyer
- Most common audit technique used by taxing authorities
- Don’t go into an IRS audit without representation
- Why hire an attorney to represent me in an audit?
- Why hire David W. Klasing to represent me in an audit
Questions and Answers for Criminal Tax Representation
- When tax defense counsel parallels tax crime investigation
- Guilty of tax obstruction by backdating documents?
- To be found guilty of tax obstruction must a person actually be successful in impeding the IRS’s functions?
- Help! The Document I Gave the IRS Had False Information
- Tax crime aiding or assisting false return IRC §7206(2)
- What is the crime known as tax obstruction § 7212?
- What is the difference between tax perjury and tax evasion?
- What is the tax crime commonly known as tax perjury?
- What is a Klein Conspiracy?
- Increased possibility of civil action in IRS investigation
- Am I Guilty of Tax Evasion if the Law is Vague?
- What happens if the IRS thinks I committed tax crimes?
- What are ways to defend against a tax evasion charge?
- Difference between criminal tax evasion and civil tax fraud
- What accounting method does the IRS use for tax fraud
- Can I Change Accounting Method to the Accrual Method
- What is the willfulness requirement for tax evasion?
- I didn’t know I committed tax fraud. Can I get off?
- Concealed assets from IRS. Can I avoid tax evasion charges
- How government proves I willfully engaged in tax evasion
- What is the venue or court where a tax crime case is heard?
- Must the IRS prove tax crimes beyond a reasonable doubt?
- Is it a crime to make false statements to the IRS?
- Will the IRS overlook my tax evasion if it’s minor?
- Failed to tell IRS about my nominee account
- Audit risk with cash based business transactions
- How to defend a client charged with tax evasion
- Is it tax evasion if I didn’t file income tax return?
- Government says I attempted to evade my taxes. Now what?
- I forgot to pay my taxes or estimated tax. Is this a crime?
- Government proof I “willfully” failed to pay taxes
- 5 Ways to Respond to Tax Evasion Charges
- Being audited after using a tax professional
- Rules for what an IRS agent can do while investigating me
- How tax preparers, attorneys and accountants are punished
- How the IRS selects tax crime lead for investigation
- How does the IRS prosecute suspected tax crimes?
- Does IRS reward informant leads for suspected tax crimes?
- How the government proves deficiency in a tax evasion case
- Do prior tax crimes factor into new IRS tax convictions?
- Requesting conference before investigative report is done
- Requesting conference after IRS Special Agent Report
- What are my rights during an IRS criminal investigation?
- Avoid prosecution for tax crime with voluntary disclosure?
- Defense tactics that make it hard for to prove willfulness
- How a tax attorney can stop your criminal tax case?
- What can you generally tell me about tax crimes?
- Continuing filing requirement with investigation pending
- Federal criminal code crimes that apply to tax issues
- Penalty for making, subscribing, and filing a false return
- CID special agent’s report for criminal prosecution
- What is the discovery process in a criminal tax case?
- What the IRS includes in indictment for tax case
- What is the hardest element of a tax crime to prove?
- IRS methods of gathering evidence to prove tax crime
- What does a grand jury do in IRS tax crime prosecution?
- Failure to keep records or supply information
- Failure to make a return, supply information, or pay tax
- What is attempting to evade payment of taxes?
- What is income tax evasion and how is it punished?
- What is attempted income tax evasion?
- What is the crime of failure to pay tax? What is punishment
- Crime of making or subscribing false return or document
- Criminal Investigation Division investigation tactics
- Tax crimes related to employment tax forms and trust funds
- Tactics to defend or mitigate IRS criminal tax charges
- How the IRS generates leads about suspected tax crimes
- What is the crime ”evasion of assessment” of tax?
- Specific examples of “attempting” to evade tax assessment
- What is the so-called Spies evasion doctrine?
- Does overstating deductions constitute tax evasion?
- Is it tax evasion if my W-4 contains false statements?
- IRC §7201 attempt to evade vs. common-law crime of attempt
- What are the penalties for Spies tax evasion?
- How government proves a taxpayer attempted tax fraud
- What is a tax that was “due and owing.”
- What is evasion of assessment for tax liability?
- Is evasion of assessment different from evasion of payment
- Does the IRS have a dollar threshold for tax fraud?
- What is the IRS burden of proof for tax fraud convictions?
- Are Tax Laws Constitutional?
- What is the source of law that defines tax evasion?
- Does section 7201 create two distinct criminal offenses?
- Does tax evasion definition include partnership LLC
- What if I helped someone else evade taxes?
- Is it illegal to overstate deductions on my tax return?
- Is it illegal to conceal bank accounts from the IRS?
- Do later losses justify prior deductions?
- Common reasons the IRS and DOJ start investigations
- What is the Mens Rea component of tax crimes?
- What is a proffer agreement and what are the risks?
- Why to have an attorney to review a proffer agreement
- Why enter into a proffer agreement?
- Limited use immunity from proffer agreements
- Difference between civil and criminal fraud allegations
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
- Substitute return modified by subsequent delinquent return?
- 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
- Will I get a refund on a delinquent tax year?
- 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
- How will the government force me to file returns?
- What penalties can IRS impose on delinquent tax filings?
- 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
- I concealed bank accounts from the government
- Forgetting or failing to file tax return
