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In a story that reads right out of a Hollywood blockbuster, a high-powered CEO of a multi-billion-dollar technology company was recently indicted on various federal charges after allegedly attempting to conceal over $2 billion of income from the IRS. Although this story involves extremely high dollar amounts, the everyday taxpayer is not immune from tax evasion charges should they choose to intentionally duck their federal or state tax obligations. 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 examination or under criminal tax investigation, it is in your best interest to contact an experienced tax defense attorney to discuss your options to get right with the government.
According to a Department of Justice press release, Robert T. Brockman, the CEO of a large Ohio-based technology company, was recently indicted by a federal grand jury in California on 39 counts, including money laundering, wire fraud, and tax evasion, among other charges. Most pertinent for this article, Brockman is accused of having hid over $2 million of untaxed income from the IRS using secret foreign bank accounts.
IRS and Department of Justice Tax Division investigators allege that between 1999 and 2019, Brockman funneled untaxed capital gains from the United States to undeclared foreign bank accounts held by a web of offshore entities on exotic and secluded islands such as Nevis and Bermuda and to other bank accounts in Switzerland. To effectuate his scheme, prosecutors allege that Brockman backdated documents, used codewords to communicate, and ordered the destruction of evidence related to the movement of money so that evidence did not exist should he be investigated and tried. In addition to the charges related to tax evasion, Brockman was charged for crimes related to illegally obtaining certain ownership rights of the technology company for which he worked.
All in all, Brockman was charged with one count of conspiracy, seven counts of tax evasion, six counts of failing to disclose his foreign bank accounts, twenty counts of wire fraud, money laundering, money laundering, international concealment money laundering, evidence tampering, and destruction of evidence. If Brockman is convicted of all the above charges, he could spend decades in federal prison.
Although the case described above involves dollar amounts that are likely far greater than most Americans will earn in a lifetime, the sentiment that the IRS and Department of Justice will come after anyone who engages in tax evasion applies to all Americans and those with U.S. tax obligations. Although there are various methods that are completely legal that can be employed to lower a taxpayer’s tax liability, funneling untaxed gains through secret bank accounts in foreign countries without reporting the existence of those bank accounts to the U.S. government could land you in federal prison.
If you have failed to file a tax return for one or more years or have taken a position on a filed state or federal tax return, you should strongly consider seeking the assistance of an experienced tax defense attorney. Together, you will be able to determine the criminal and civil exposure in your situation and chart a course to come into tax compliance. Additionally, once you are represented by an experienced tax defense attorney, you will never have to go up against the IRS alone.
Note: As long as a taxpayer that has willfully committed tax crimes (potentially including non-filed returns coupled with affirmative evasion of payment) 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!
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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