According to a Department of Justice press release, an Arkansas resident recently pleaded guilty to tax evasion after fraudulently instructing his employer to not withhold federal income taxes from his paycheck and failing to file tax returns. This story should remind taxpayers that failing to report your true amount of income on an annual basis violates multiple federal income tax laws. While it may seem like a single taxpayer is a small fish in a big pond, the IRS has employed advanced technology to root out and identify those individuals intentionally violating federal tax law. If you have failed to file a tax return for one or more years, or have filed a knowingly false tax return, it is in your best interest to contact an experienced tax defense attorney to determine the best strategy to come into compliance.
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!
Court documents reveal that between 2014 and 2016, Joshua Wood, of Alma, Arkansas, instructed his employer to not withhold federal income tax from his paycheck. During those same years, the defendant failed to file an individual tax return. The IRS and Department of Justice estimate that during that same period, the defendant earned more than $378,000 working as a salesman of automobiles and recreational vehicles.
When confronted by IRS investigators, the defendant falsified a story about being a wounded veteran who had been shot down on a Navy mission, prompting post-traumatic stress disorder. Further, the defendant attempted to shield himself from civil or criminal liability by falsely claiming that a CPA had been responsible for his tax return filings. The IRS and Department of Justice determined that no such CPA had prepared his taxes or had been hired to do so. Just the mere act of lying to a federal agent is a felony in and of itself.
The defendant faces up to five years in prison for each count of tax evasion. Further, he may be ordered to serve a period of supervised release upon the completion of any prison sentence. Finally, the defendant will likely be ordered to pay restitution to the IRS, representing the amount of tax loss caused.
The amount that the IRS claims the defendant failed to pay in taxes as a part of this case evidences that criminal charges may be brought against those who think of themselves to be a small fish in a big pond. Although many Americans believe that the IRS and Department of Justice targets only those who are high earners or are constantly in the public eye, technological advances at the IRS have allowed the Service to identify and investigate taxpayers from all walks of life accused of failing to follow federal income tax laws.
If you have failed to file a tax return for one or more years or have filed a tax return that does not accurately reflect your true income, It could only be a matter of time until the IRS discovers your wrongdoing and attempts to make contact with you to rectify the situation. Generally speaking, taxpayers who make an affirmative effort to correct their tax exposures have more favorable outcomes than those who wait for the IRS to launch an investigation. Working with an experienced tax defense attorney, you will first determine the pertinent facts of your case, and then agree on a road map forward to get you right with the government. While you are being represented by a seasoned tax attorney, you won't have to go up against the IRS or Department of Justice alone.
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.
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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