Awards & Recognition
Bakersfield, a lively city known for its agricultural roots and growing economic landscape, is not immune to the temptation to fudge returns to illegally reduce federal and California state tax regulations. Many individuals and small businesses in the city to be less risk-averse. As a result, if you are facing a criminal tax investigation or are worried about a high-risk audit that could escalate into an eggshell or reverse eggshell audit, it is crucial to understand the potential seriousness of your situation. When dealing with an IRS or California (CDTFA, EDD, FTB) criminal tax investigation or a high-risk eggshell or reverse eggshell audit, there are specific actions you should take and others you should avoid to build a strong defense and minimize any potentially devastating consequences.
Addressing an IRS or California (CDTFA, EDD, FTB) criminal tax investigation demands immediate and calculated action. Recognizing the early signs of an IRS or California criminal tax inquiry can tilt the outcome to your advantage. It’s crucial to engage a dual-licensed Criminal Tax Defense Attorney and CPA promptly. Their profound knowledge of tax legislation and insights into the IRS’s clandestine investigation methods can play a pivotal role in damage control. The primary objective is to settle the criminal tax investigation or perilous tax audit without escalating to criminal tax prosecution, evading the severe negative publicity and life-altering consequences accompanying an indictment.
Despite Bakersfield’s rich agricultural heritage and its growing economic base, it’s crucial to recognize that both federal and California state tax obligations are universally stringent. From understanding the stages of an IRS tax audit and federal or state criminal tax investigations to identifying potential red flags that might attract the attention of the IRS’s Criminal Investigation Division or California’s Criminal Tax Investigators taxpayers are advised to be thoroughly informed.
It is essential to hire an attorney if you are not treated fairly or have cheated on your tax returns and wish to avoid criminal tax prosecution. In a city like Bakersfield, with its blend of traditional industries and modern growth, it may be tempting to navigate these challenges independently or with the help of your Original Tax Preparer. However, the stakes are too high, and the consequences too severe to take such risks.
When you need tax services in Bakersfield, contact the Tax Law Offices of David W. Klasing today to schedule a reduced rate 10-minute initial consultation with an experienced tax attorney. Our dual-licensed Bakersfield, CA, Tax Attorneys & CPAs excel in addressing complex, high-risk tax dilemmas. Whether it’s assisting online vendors with California’s evolving sales tax regulations or steadfastly supporting businesses during high-risk IRS audits, our strategic interventions aim to curtail your tax liabilities and safeguard you from potential civil or criminal tax repercussions. From meticulously managing amended tax returns to handling intricate IRS home, office, correspondence, eggshell, or reverse eggshell tax audits, we always place your interests at the forefront, ensuring minimized risks and solutions tailored to your needs. Our founder and principal attorney, David W. Klasing, possesses decades of experience as a former auditor in public accounting and has represented countless clients in federal (IRS) and California (FTB, CDTFA (BOE), EDD) audits for nearly three decades, enabling our tax team to navigate the audit process with precision and skill.
Could An Eggshell Audit Lead to Criminal Tax Charges?
A high-risk tax audit, known as an “eggshell audit,” can potentially result in IRS and or California criminal tax charges. Formal charges may be filed by state or federal prosecutors using either an indictment or information, depending on the circumstances. The taxpayer may be under IRS criminal investigation for weeks, months, or even longer before any charges are filed and before they are ever approached by IRS special agents. The moment you become aware, or merely suspect, a criminal tax audit or investigation into yourself or your business is the moment you should contact a Bakersfield tax defense lawyer for guidance on which steps to take – and avoid taking – as the government develops its civil or criminal tax case against you. This will give you the best chance of avoiding criminal tax prosecution.
What Are the Consequences of a Criminal Tax Conviction in Bakersfield?
Remember that most tax crimes are federal and or California felonies, which tend to carry some of the harshest possible penalties in the U.S. judicial system. Tax fraud punishments can include criminal tax fines, IRS restitution, imprisonment, supervised release after the offender leaves prison, and, in cases involving CPAs, other taxpayer advocates, or anyone under California’s Business and Professions code (Doctor’s Lawyers, Dentists, Architects, Actuaries, Engineers, etc.) potential career-ending professional disciplinary actions. For example, the tax evasion penalty can include a fine of up to $100,000 (or up to $500,000 for corporations), up to five years in prison, and payment for prosecution.
How Can I Protect Myself During a Criminal Tax Investigation in Bakersfield?
A tax evasion attorney in Bakersfield may be able to, at worst, mitigate or, at best, outright avoid the civil and or criminal tax penalties you are facing. However, each moment you delay makes it harder to fight the charges successfully. Contact an IRS tax attorney right away if you suspect you are being audited or investigated in a scenario where you could potentially be charged with tax evasion (attempt to evade or defeat tax), payroll tax fraud (willful failure to collect or pay over tax), willful failure to file a return (owing “back taxes”), making false statements, interfering with the administration of Internal Revenue laws, or other tax crimes in California.
Engaging the services of our Bakersfield Dual Licensed Criminal Defense Attorneys & CPAs at the onset of a high-risk audit / criminal tax investigation will maximize the possibility of a favorable outcome without escalating to criminal tax charges. We have never had a federal or California audit client criminally prosecuted for tax crimes. When facing tax audits from agencies like the IRS, CDTFA, EDD, or FTB, certain red flags, such as destroyed records, underreported income, badges of fraud, or unfiled returns, can intensify the examination and may lead to high-risk eggshell and reverse eggshell tax audits. As such, residents and businesses must be aware of potential criminal tax violations and the signs indicating that they might be under a more rigorous investigation by the IRS’s Criminal Investigation Division (CID). This is especially so when the taxpayer has a history of blatantly cheating on their tax returns and is now under audit and thus fears criminal tax prosecution.
Our attorneys can help you avoid being blindsided by a federal or California criminal tax investigation, mitigate existing risks, and protect your rights as necessary. In addition to tax deficiency payments plus interest, audits can result in additional financial penalties, criminal tax charges, increased future scrutiny, and, worst-case scenario, prison time. These can be enormous consequences for a taxpayer. Do not face these risks alone – ask our dual-licensed Bakersfield Tax Lawyers & CPAs for help today. Call (661) 432-1480 or 888-640-3408 or contact us online today to schedule a reduced rate initial consultation at our Bakersfield tax law offices or one of our other convenient locations across Southern California.
Why Might the IRS Launch a Criminal Investigation?
Engaging in Deceptive Tax Schemes:
The IRS is vigilant against taxpayers suspected of participating in illegal tax shelters or orchestrating intricate transactions to conceal income. Such maneuvers are designed to dupe the IRS and shirk tax responsibilities. Engaging in these tactics can quickly land you under the IRS’s microscope;
Intentional Non-Compliance:
Deliberately failing to file or pay your taxes can catalyze an IRS criminal tax investigation. Such willful non-compliance can culminate in severe civil and criminal tax penalties, encompassing hefty fines and potential incarceration;
Submission of Counterfeit Documents:
Furnishing the IRS with fabricated financial records, such as falsified receipts, to reduce tax liabilities can severely compromise the tax system’s integrity. Engaging in this act can trigger a rigorous criminal tax investigation;
Offshore Tax Evasion and Money Laundering:
In collaboration with global agencies, the IRS constantly looks for individuals or entities funneling unreported funds into offshore accounts or engaging in money laundering. Such practices are red flags for potential tax evasion and
Engagement in Illicit Activities:
Involvement in organized crime, drug trafficking, or fraud can precipitate an IRS criminal tax investigation. The government’s focus is to unearth federal tax violations tied to the illicit proceeds in question.
Get Back into Tax Compliance without Facing Criminal Tax Prosecution with our dual-licensed Voluntary Disclosure Attorneys and CPAs
If you’re in Bakersfield and realize that you could face criminal tax prosecution over a history of blatantly cheating on your federal and California tax returns if discovered, voluntarily disclosing this history by knocking on the IRS’s door before they bang down your door is the most crucial step towards resolution without facing criminal tax prosecution. While California does not have a sister program to the federal voluntary disclosure program for California residents, we have never had a client criminally prosecuted after making a federal voluntary disclosure. They seem to just cash the checks and process the amended California returns.
Our dual-licensed Bakersfield Voluntary Disclosure Attorneys and Bakersfield Tax Evasion Attorneys & CPAs offer experienced guidance through the IRS Voluntary Disclosure Practice (VDP). This program is crucial for individuals who have willfully understated their federal tax liabilities. It provides a systematic and secure avenue to rectify their tax status while avoiding criminal tax prosecution. Similarly, the State of California’s Franchise Tax Board (FTB) and the California Department of Tax and Fee Administration (CDTFA) provide methods for non-compliant taxpayers in Bakersfield to regain compliant status by coming forward with the details of their failure to comply with the California state tax code. The path to voluntary disclosure to the FTB depends on whether you are an in-state or out-of-state filer. We are dedicated to assisting in making sincere, comprehensive, and timely disclosures to the IRS and California state tax authorities, which includes arranging for the payment of owed taxes, interest, and penalties and cooperating with the tax agencies to determine the correct tax liability.
As long as a taxpayer in Bakersfield who has willfully committed tax avoidance (potentially including non-filed foreign information returns coupled with affirmative evasion of U.S. income tax on offshore income) self-reports the federal tax noncompliance through a domestic or offshore voluntary disclosure with the help of our Bakersfield Foreign Account & Offshore Taxable Income Tax Compliance Attorney 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.
Call (661) 432-1480 or 888-640-3408 or contact us online today to schedule a reduced rate initial consultation at our Bakersfield tax law offices or one of our other convenient locations across Southern California.
Our Bakersfield Office is Conveniently Located at:
4900 California Ave Tower B, 2nd floor,
Bakersfield, CA 93309, United States
(661) 432-1480
