According to a Department of Justice press release, an Arkansas business owner recently pleaded guilty to tax evasion charges stemming from his effort to avoid paying taxes that he previously admitted to owing. This story should serve as a reminder to taxpayers with an outstanding tax debt that although the IRS will work with you, they will not tolerate a failure to pay coupled with willful actions to evade payment of what is owed. If you have significant tax debt, or have failed to file a tax return for one or more years, it is in your best interest to contact an experienced tax defense attorney to discuss the particulars of your situation.
Defendant Hid Income and Assets to Avoid Paying Taxes, Pleads Guilty
Court documents reveal that James Brassart earned $1,502,749 in 2006 and in turn, owed $486,348 in federal income tax for that tax year. Although Brassart had more than enough income to pay his income tax liability, he took several steps to conceal his income and assets from the IRS.
IRS investigators alleged that from 2010 through 2016, Brassart took several steps to funnel business income through three nominee corporations. Once business income was directed into those entities, Brassart used the funds to pay his own personal expenses and further his own business endeavors. During that time, Brassart filed several petitions with federal courts attempting to discharge his IRS debt in bankruptcy. As a part of that process, Brassart made various false statements regarding his ownership of valuable assets.
The IRS and Department of Justice estimate that Brassart’s illegal activity caused a tax loss of more than $1,360,000. When Brassart is sentenced next year, he faces up to five years in federal prison for the tax evasion charge. Additionally, Brassart will likely be sentenced to serve a period of supervised release upon the completion of his physical incarceration. Lastly, Brassart will likely be ordered to pay restitution to the IRS in the amount of the tax loss that he caused.
Seeking the Assistance of a Tax Defense Attorney When You Owe Money to the IRS
It is not uncommon for both individuals and businesses to owe a tax debt to the IRS. When a taxpayer has tax payable, the IRS has various options to satisfy the obligation. In certain circumstances, when taxpayers simply do not have the ability to pay the taxes that they owe, the IRS has an offer-in-compromise mechanism whereby some or all the taxpayer’s debt may be forgiven by the IRS.
If you are in tax debt or have missed one or more tax returns, you should strongly consider speaking with an experienced tax defense lawyer. Together, you and your tax attorney will establish the facts of your case and determine the right steps to move forward into tax compliance. Although it is likely the easiest action to take, the most harmful strategy when you owe the IRS tax debt or have failed to file a tax return is to ignore the problem. The taxpayer in the above story simply lied to the IRS and the bankruptcy court about his ability to pay and will end up paying for it in more ways than one. Getting right with the government does not have to be a scary or difficult process. With the help of an experienced tax defense attorney, you won’t have to go up 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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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?
- Can I set up a payment plan for unpaid 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
- How long does it take to get an Offer in Compromise?
- 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
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- 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)?
- 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
