For most of the American population, the regularity of daily life has been significantly upended due to the Coronavirus pandemic. With many Americans working limited schedules, working from home, or struggling to find work at all, it is unsurprising that the judicial system has likewise been affected. Nonetheless, various courts continue to hear criminal tax cases. Today’s story will highlight the virtual sentencing of a Colorado man who pleaded guilty to tax evasion. Regardless of the status of the courts, if you have failed to live up to your legal tax obligations or are the target of a high-risk state or IRS tax audit, it is in your best interest to contact an experienced tax defense attorney as soon as possible.
See our Criminal Tax Law Q and A Library
According to local media reports, Tracey Tucker, a plumber from Fairplay, Colorado, pleaded guilty to theft and tax evasion earlier this week. At the virtual hearing, necessitated by the physical closure of most courtrooms in the U.S. due to Covid 19, Tucker was sentenced to serve six months in jail and was ordered to pay nearly $40,000 in restitution.
Prosecutors alleged that Tucker owned and operated Mountain Mechanical, a contracting business. During an investigation initiated in 2018, state investigators discovered that Tucker had established a practice of charging customers thousands of dollars in deposits. After receiving the funds, he would not complete the work or return his customers’ deposits.
Additionally, the Colorado Department of Revenue had opened an investigation into Tucker and his business, as he had failed to file state income tax returns for several years. As with most cases of theft, Tucker also had a legal responsibility to include the deposits that he stole from his clients in his annual gross income.
Small and medium-sized businesses are generally easier for state or federal tax authorities to target due to their simplicity compared to complex multinational corporations. Thus, it is critical that business owners do all that they can to ensure that they are compliant with state and federal tax laws. In the defendant’s case above, the failure to file tax returns can point the taxing authority in your direction, resulting in additional digging and potentially criminal tax charges. Additionally, when another law enforcement agency investigates for a non-tax related crime, tax crimes can also be uncovered.
Although life is different for many of us during the Coronavirus outbreak and recovery efforts, those responsible for administering the tax laws continue to press on. Likewise, our tax defense team has not let up in assisting our clients get right with the California taxing authorities and the federal government. If you have fallen behind on your annual tax filings or have been notified that your tax returns are under examination, it is in your best interest to consult with an experienced tax defense attorney.
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 disclosure before 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 voluntary disclosure.
As uniquely qualified and extensively experienced Criminal Tax Defense Tax Attorneys, Kovel CPAs 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!
See our Non-Filer Q and A Library
See our 2011 OVDI Q and A Library
See our FBAR Compliance and Disclosure Q and A Library
See our Foreign Audit Q and A Library
The tax and accounting professionals at the Tax Law Offices of David W. Klasing have extensive experience representing a diverse group of taxpayers. From individuals to middle market businesses and beyond, our team of zealous advocates will assist in the development of a strategy to help you reach your specific goals and objectives. Whether you are under a tax examination or are in need of tax planning advice, contact the Tax Law Offices of David W. Klasing today, online or by phone at (800) 681-1295, for a reduced-rate consultation.
Here is a link to our YouTube channel: click here!
Regardless of your business 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.
Our office technology allows clients to meet virtually via GoToMeeting. 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.