According to a Department of Justice press release, Jacqueline Ramos, also-known-as Jackie Acosta, of Salinas, California was recently sentenced to service five years in prison for her part in a conspiracy that involved the filing of false tax returns that resulted in the payment of over a million dollars of fraudulent tax refunds. This story is a reminder that those who cheat on their taxes and are caught will have a difficult time walking away from the situation unscathed. It is in the best interest of any taxpayer that has cheated or otherwise been out of compliance to consult with an experienced tax defense attorney to rectify the situation before it is too late.
Defendant Falsified Tax Returns, Received Fraudulent Refunds
According to prosecutors, Ramos, along with several co-defendants, conspired to file several false income tax returns that sought over $1.6 million in refunds from the IRS. The returns relied on falsified wages, tax credits, and dependents that did not exist. Additionally, the tax returns took advantage of provisions giving preferential treatment to certain educational expenses, which were also not actually incurred.
Court documents indicate that after the refunds were paid out, Ramos and her associates transferred the illegally-obtained proceeds into bank accounts that they controlled. All in all, Ramos pleaded guilty to one count of conspiracy to defraud the U.S. government, and two counts of bank fraud.
In addition to serving 60 months in prison, Ramos will serve three years of supervised release. Finally, she will be required to pay $1,641,610 in restitution to the U.S. government, representing the tax refunds that she and her co-conspirators fraudulently received.
IRS Audit Chances High When Filing False Returns with Bogus Deductions
Filing false tax returns in the hopes of receiving a refund from the IRS is one of the oldest tricks in the book. Because of that, the IRS has multiple safeguards in place in an effort to catch taxpayers who have falsified their taxes. As technology has improved, the IRS and state taxing authorities have implemented computer systems that read over tax returns at an incredible speed, identifying inconsistencies or other indications that the tax return may be incorrect or fraudulent. These inconsistencies could include (but certainly are not limited to) discrepancies between a taxpayer’s reported income and income reported on forms W-2 or 1099.
Once the IRS or state taxing agencies have determined that a tax return requires further analysis, they will typically dispatch a letter to the taxpayer that indicates that their tax return has been selected for examination. When the taxpayer sits down with the revenue agent, the return will be reviewed thoroughly. The IRS or state taxing revenue agent will be looking for “badges of fraud”, a term used by taxing authorities that describe items on a tax return accompanied by statements made by the taxpayer that would indicate that fraudulent activity has occurred.
Benefits of Hiring an Experienced Tax Defense Attorney
One of the most valuable benefits of having an experienced tax defense attorney present at the time of any interactions with the IRS or state taxing authorities is managing the flow of the examination. Many taxpayers believe that they can walk into a tax return examination and talk their way out of the situation. This typically is not the case. The IRS and state taxing authorities hire skilled revenue agents who are trained in sniffing out tax fraud. A tax attorney will ensure that the taxpayer only answers the questions that are required, without providing incriminating evidence that could be used later at trial, if the situation was escalated to that point.
Although not all taxpayers are caught, those who are typically receive harsh prison sentences and financially devastating fines and penalties. Gambling with your livelihood and hoping that the IRS will not detect your untruthful or incorrect tax return is not worth the potential of federal prison time. If you have taken positions on your tax returns that are inconsistent with the tax law, it is imperative that you contact an experienced tax defense lawyer to help you devise a plan to manage the situation. Taxpayers, with the help of their experienced tax attorneys, who affirmatively take steps to mitigate past tax missteps are better positioned to reduce or, in some cases, eliminate the threat of damaging financial penalties or criminal charges.
Contact a Tax Defense Attorney Today
The tax and accounting professionals at the Tax Law Offices of David W. Klasing have represented countless numbers of taxpayers from a variety of walks of life. Whether you are facing an IRS income tax examination or a business tax audit, our team of zealous advocates is ready to assist you in developing a strategy aimed at maintaining your physical and financial freedom. Do not let the IRS or the state taxing authorities cause you to lose sleep. Contact the Tax Law Offices of David W. Klasing today for a reduced-rate consultation.
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More Commonly Asked Tax Audit Questions
- How should Tax Audits be Handled by Criminal Tax Counsel?
- How to survive audit when I cheated on return being audited
- What is an eggshell audit?
- What is a reverse egg shell audit?
- Why is a reverse egg shell audit dangerous for a taxpayer?
- Warning signs of a criminal referral from an IRS audit
- Effective tax defense counsels goals in an egg shell audit?
- How are the 4 goals and outcomes 1 and 2 best obtained?
- What are the possible outcomes of an egg shell audit?
- Is it my right to know why I was selected for examination?
- What can I do to prepare for an audit?
- What is an IRS civil examination?
- How IRS decides which tax returns are audited
- What are my appeal options if I disagree with IRS?
- What are my basic taxpayer rights if the IRS audits me?
- Options if I am unable to pay at the conclusion of audit
- What a 30 or 90 day letter from the IRS means
- What is involved with appealing disagreements?
- Rights to disagree with IRS tax auditor’s findings
- Can I stop the IRS from repeatedly auditing me?
- Can I have the examination transferred to another area?
- Can I record my IRS interview and is it a good idea?
- How many years of returns are at risk during an audit?
- Common reasons for the IRS to conduct a tax audit
- How to avoid negative consequences from an IRS interview
- Have to agree to interview by taxing authority directly?
- Are all audits the same?
- What should I do if the IRS is investigating me?
- What if I don’t respond to a taxing authority audit notice
- Your rights during an IRS tax audit
- Risks of attending an IRS audit without a tax lawyer
- Most common audit technique used by taxing authorities
- Don’t go into an IRS audit without representation
- Why hire an attorney to represent me in an audit?
- Why hire David W. Klasing to represent me in an audit
Questions and Answers for Criminal Tax Representation
- When tax defense counsel parallels tax crime investigation
- Guilty of tax obstruction by backdating documents?
- To be found guilty of tax obstruction must a person actually be successful in impeding the IRS’s functions?
- Help! The Document I Gave the IRS Had False Information
- Tax crime aiding or assisting false return IRC §7206(2)
- What is the crime known as tax obstruction § 7212?
- What is the difference between tax perjury and tax evasion?
- What is the tax crime commonly known as tax perjury?
- What is a Klein Conspiracy?
- Increased possibility of civil action in IRS investigation
- Am I Guilty of Tax Evasion if the Law is Vague?
- What happens if the IRS thinks I committed tax crimes?
- What are ways to defend against a tax evasion charge?
- Difference between criminal tax evasion and civil tax fraud
- What accounting method does the IRS use for tax fraud
- Can I Change Accounting Method to the Accrual Method
- What is the willfulness requirement for tax evasion?
- I didn’t know I committed tax fraud. Can I get off?
- Concealed assets from IRS. Can I avoid tax evasion charges
- How government proves I willfully engaged in tax evasion
- What is the venue or court where a tax crime case is heard?
- Must the IRS prove tax crimes beyond a reasonable doubt?
- Is it a crime to make false statements to the IRS?
- Will the IRS overlook my tax evasion if it’s minor?
- Failed to tell IRS about my nominee account
- Audit risk with cash based business transactions
- How to defend a client charged with tax evasion
- Is it tax evasion if I didn’t file income tax return?
- Government says I attempted to evade my taxes. Now what?
- I forgot to pay my taxes or estimated tax. Is this a crime?
- Government proof I “willfully” failed to pay taxes
- How to respond to willful tax evasion charges
- Being audited after using a tax professional
- Rules for what an IRS agent can do while investigating me
- How tax preparers, attorneys and accountants are punished
- How the IRS selects tax crime lead for investigation
- How does the IRS prosecute suspected tax crimes?
- Does IRS reward informant leads for suspected tax crimes?
- How the government proves deficiency in a tax evasion case
- Do prior tax crimes factor into new IRS tax convictions?
- Requesting conference before investigative report is done
- Requesting conference after IRS Special Agent Report
- What are my rights during an IRS criminal investigation?
- Avoid prosecution for tax crime with voluntary disclosure?
- Defense tactics that make it hard for to prove willfulness
- How a tax attorney can stop your criminal tax case?
- What can you generally tell me about tax crimes?
- Continuing filing requirement with investigation pending
- Federal criminal code crimes that apply to tax issues
- Penalty for making, subscribing, and filing a false return
- CID special agent’s report for criminal prosecution
- What is the discovery process in a criminal tax case?
- What the IRS includes in indictment for tax case
- What is the hardest element of a tax crime to prove?
- IRS methods of gathering evidence to prove tax crime
- What does a grand jury do in IRS tax crime prosecution?
- Failure to keep records or supply information
- Failure to make a return, supply information, or pay tax
- What is attempting to evade payment of taxes?
- What is income tax evasion and how is it punished?
- What is attempted income tax evasion?
- What is the crime of failure to pay tax? What is punishment
- Crime of making or subscribing false return or document
- Criminal Investigation Division investigation tactics
- Tax crimes related to employment tax forms and trust funds
- Tactics to defend or mitigate IRS criminal tax charges
- How the IRS generates leads about suspected tax crimes
- What is the crime ”evasion of assessment” of tax?
- Specific examples of “attempting” to evade tax assessment
- What is the so-called Spies evasion doctrine?
- Does overstating deductions constitute tax evasion?
- Is it tax evasion if my W-4 contains false statements?
- IRC §7201 attempt to evade vs. common-law crime of attempt
- What are the penalties for Spies tax evasion?
- How government proves a taxpayer attempted tax fraud
- What is a tax that was “due and owing.”
- What is evasion of assessment for tax liability?
- Is evasion of assessment different from evasion of payment
- Does the IRS have a dollar threshold for tax fraud?
- What is the IRS burden of proof for tax fraud convictions?
- Are Tax Laws Constitutional?
- What is the source of law that defines tax evasion?
- Does section 7201 create two distinct criminal offenses?
- Does tax evasion definition include partnership LLC
- What if I helped someone else evade taxes?
- Is it illegal to overstate deductions on my tax return?
- Is it illegal to conceal bank accounts from the IRS?
- Do later losses justify prior deductions?
- Common reasons the IRS and DOJ start investigations
- What is the Mens Rea component of tax crimes?
- What is a proffer agreement and what are the risks?
- Why to have an attorney to review a proffer agreement
- Why enter into a proffer agreement?
- Limited use immunity from proffer agreements
- Difference between civil and criminal fraud allegations
