According to a recent Department of Justice press release, a North Carolina man was sentenced to 36 months in prison for tax evasion. This case demonstrates the serious repercussions of failing to comply with tax laws, including substantial fines and imprisonment. If you have failed to file a federal or state tax return for one or more years, or have taken a position on a tax return that could not be supported upon audit, it is in your best interest to contact an experienced tax defense attorney as soon as possible to discuss your options to come back into tax compliance.
Defendant Failed to File Tax Returns for Two Decades
Court records reveal that Darren Lee Joy of Matthews, North Carolina, did not file individual income tax returns for most of the past two decades, despite earning an income level that legally required him to do so. Joy evaded taxes by submitting and maintaining forms W-4 and state tax forms with his employers that falsely claimed he was exempt from federal and state income tax withholding. As a result, his wages were not subject to tax withholding, and little to no taxes were paid to the IRS. In total, Joy earned more than $1.8 million in income, which resulted in owing over $380,000 in state and federal income taxes.
U.S. District Court Judge Frank D. Whitney ordered Joy to serve two years of supervised release following his prison term and to pay $359,859 in restitution to the United States, and $23,058 in restitution to the State of California.
Navigating Tax Evasion Charges with the Help of a Tax Attorney
Joy’s case serves as a serious warning of the severe penalties that can arise from evading tax obligations. If you find yourself in a situation where you’ve failed to file tax returns or falsely claimed exemptions, it is vital to contact an experienced tax attorney to determine the best way to get right with the government.
A tax attorney can help you understand the severity of your situation, provide you with options to rectify your tax status, and potentially negotiate with the IRS on your behalf to reduce penalties. It’s important to remember that tax evasion is a serious crime with severe consequences, and seeking the help of a skilled attorney is a critical step in resolving your tax issues.
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.
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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
- 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
