Call Now (800) 681-1295

Colorado Man Convicted of Conspiracy and Making False Claims Against the U.S. in Tax Credit Case

Table of Contents

    According to a Department of Justice press release, a Denver, Colorado man was found guilty of conspiracy to commit money laundering, conspiracy to defraud the United States, making false claims against the United states, and money laundering by a federal jury last week. This case involves the improper utilization of certain tax credits related to renewable fuels, but the takeaway is broader than that and is a reminder that you should consult with an experienced tax attorney if you are unsure about the applicability of certain tax credits or if you are in search of legally permissible methods to reduce your tax liability.

    At trial, prosecutors presented evidence that Martin Fields worked alongside various other individuals to file knowingly false claims for certain tax credits for the production and utilization of renewable fuels. The renewable fuel tax credit one of many credits under a federal program that rewards companies for producing renewable fuel. Tax credits are valuable to taxpayers because they offset tax liability on a dollar-for-dollar basis and certain tax credits are refundable.

    See our Criminal Tax Law Q and A Library

    Conspirators Created Fake Company, Claimed Credits Based on Fictitious Facts

    Evidence indicated that Martin and his co-conspirators created a fake entity called Shintan Inc. that held itself out to be a creator of renewable biodiesel fuel. Fields and his associates caused Shintan Inc. to file false documentation with the IRS for tax years 2010 through 2013, claiming that the entity was entitled to more than $7.2 million in renewable fuel tax credits. In reality, the company had not produced any renewable fuel that qualified under the biodiesel renewable energy credit program.

    When the tax credits were refunded to the Fields and his co-conspirators, the defendants passed the funds through various bank accounts and shell companies as a part of a laundering scheme. During his trial, government attorneys presented evidence that Fields personally benefited from the scheme and received more than $1.8 million.

    The other two defendants pleaded guilty to similar charges prior to Fields’ trial. Sentencing has been scheduled for early next year. As he was convicted on all of the counts against him, Fields faces up to 10 years in prison on the money laundering count, five years in prison for each conspiracy count, and five years in prison for making a false claim against the United States. Additionally, Fields will likely be sentenced to serve a term of supervised release upon the completion of his physical incarceration. Lastly, Fields is expected to be ordered to pay restitution to the IRS.

    Knowing When to Consult with a Tax Attorney About Tax Credits

    As we mentioned above, the biodiesel renewable energy credit applies to a relatively small number of taxpayers, but there are hundreds of different tax credits that benefit millions of taxpayers annually. Whether you are a businessperson investigating whether your company qualifies for a particular business-related tax credit, or an individual who may have claimed a higher education-related tax credit, you should always be cautious about overstating the credits that you qualify for on your taxes.

    One of the most common areas of interest for an IRS agent during examination is tax credits. Because one dollar of tax credit offsets tax liability on a dollar-for-dollar basis and the fact that some are refundable, make the utilization of tax credits an easy target. Whether you have utilized tax credits on your tax return or not, if you receive notice that you have been selected for examination, it is in your best interest to contact an experienced tax defense attorney as soon as possible to discuss your strategy.

    Contact an Experienced Tax Attorney Today

    The tax and accounting professionals at the Tax Law Offices of David W. Klasing have worked with business owners of companies ranging in size from mom and pop to middle market to small. If you have received notice from the IRS or state taxing authorities that your payroll tax withholding, accounting, and remittance procedures are being scrutinized, our team of zealous advocates will help you develop a legal strategy aimed at preserving the integrity of you and your business. Do not let the threat of a criminal tax investigation or tax prosecution keep you up at night. Contact the Tax Law Offices of David W. Klasing today for a reduced-rate consultation.

    Here is a link to our YouTube channel: click here!

    In addition to our staffed main offices 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.

    Note: If you have concerns about the privacy of our initial or subsequent communication and are unable to easily travel to our Irvine / Orange County Main Office, consider scheduling a GoToMeeting to safely and securely establish an initial or maintain an existing attorney client relationship.  With end-to-end encryption, strong passwords and top-rated reliability, no one is messing with your meeting. To schedule a reduced rate initial consultation via GoToMeeting follow this link.   Call our office and request a GoToMeeting if you are an existing client. We are generally happy to travel to any of our appointment only satellite offices for a subsequent meeting in appropriate circumstances once a relationship is established via a signed engagement letter and the payment of an initial retainer or where enough retainer is available where a current client to cover the reasonable travel time and time required for the meeting.

    Will it cost me more to hire the Tax Law Offices of David W. Klasing, who’s main office and the vast majority of the firm’s staff is located in Irvine California, but an appointment only Satellite office is close to my location, as opposed to a local company?  Absolutely not!  See our policies that address this issue here.

    Tax Help Videos

    Representing Clients from U.S. and International Locations Regarding Federal and California Tax Issues

    Main Office

    Orange County
    2601 Main St. Penthouse Suite
    Irvine, CA 92614
    (949) 681-3502

    Our headquarters is located in Irvine, CA. Our beautiful 19,700 office space is staffed full-time and always available for our clients to meet with our highly qualified and experienced staff of Attorneys, Certified Public Accountants and Enrolled Agents. We also offer virtual consultations and can travel to meet with clients in one of our satellite offices.

    Outside of our 4 hour initial consultation option, we do not charge travel time or travel expenses when traveling to one of our Satellite offices, or surrounding business districts, where it is necessary to meet personally with taxing authority personnel, make court appearances, or any in person meeting deemed necessary for the effective representation of a client. To make this as flexible, efficient, and convenient as possible, David W. Klasing is an Instrument Rated Private Pilot and Utilizes the Firms Cirrus SR22 to service client’s in California and in the Southwest by air. Offices outside these areas are serviced via commercial jet airlines. None of these costs are charged to our clients.

    Satellite Offices

    (310) 492-5583
    (760) 338-7035
    (916) 290-6625
    (415) 287-6568
    (909) 991-7557
    (619) 780-2538
    (661) 432-1480
    (818) 935-6098
    (805) 200-4053
    (510) 764-1020
    (408) 643-0573
    (760) 338-7035
    (602) 975-0296
    New Mexico
    (505) 206-5308
    New York
    (332) 224-8515
    (512) 828-6646
    Washington, DC
    (202) 918-9329
    (702) 997-6465
    (786) 999-8406
    (385) 501-5934