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Customs Broker from Corona Indicted on Tax Evasion Charges in Alleged Wire Fraud Scheme

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    Recently, a Corona man surrendered to authorities after being indicted on several counts of federal tax code offenses. The charges arise from two separate schemes. The government alleges that the defendant was fraudulently inflating the reported fees on customs duties his company was paying for a client and then not paying income tax on the ill-gotten gains, instead choosing to pay mortgage payments in someone else’s name.

    Tax evasion and wire fraud charges are serious. When a defendant is convicted of any of these offenses, courts use sentencing guidelines that could include multiple years in prison and fines totaling in the six or even seven-figure range. You may be able to avoid criminal tax charges through voluntary disclosure, a process that you should not take on alone.

    For your own sake, enlist the help of one of the dual-licensed Tax Lawyers and CPAs at the Tax Law Offices of David W. Klasing. We can walk you through your options to ensure that your best interest is served wherever you may find yourself with your tax predicament. Call today to schedule a reduce rate initial consultation at (800) 681-1295 or better yet, schedule online HERE.

    California Man Faces Grand Jury Indictment for Alleged $3.4 Million Wire Fraud Scheme

    A customs broker was indicted this February on one count of tax evasion and three counts of wire fraud. The government alleges that Frank Seung Noah, 59, evaded roughly $1.5 million in taxes through his scheme targeting the Japanese variety store Daiso.

    Noah owned a logistics and supply-chain company called Comis International Inc., headquartered in Cerritos. Comis contracted with Daiso over the course of 12 years, from 2007 to 2019. In those years, the government claims that Noah inflated the value of customs import duty fees that he supposedly paid while serving the Daiso national chain so that he could bill them at a higher rate.

    Additionally, the government alleges that Noah improperly failed to pay taxes for three taxable years (2008, 2009, and 2010). The indictment claims that Noah made only partial payments on his owed tax obligations while spending large amounts of his income on mortgages in his girlfriend’s name for properties in Rancho Mirage and Corona.

    The allegations suggest that Noah transferred the money to his girlfriend’s bank account so that she could pay the mortgage with those funds. One such transaction included a check from Noah to his girlfriend in the amount of $120,000 after selling a property in Carson for just over $140,000.

    Noah pled not guilty and was released on bail. The tax evasion charge carries up to $100,000 in fines and five years in jail time, and the wire fraud charges could carry as much as 20 years in prison.

    What Is the Difference Between Tax Evasion and Tax Avoidance?

    You may have heard the term tax evasion thrown around to mean many different things. Practically, it does not simply mean evading taxes. Strictly speaking, actions taken to lessen tax liability and maximize post-tax income may be perfectly legal. When they are legal, these strategies are referred to as tax avoidance. You are well within your rights to utilize lawful and valid structures to lessen your tax burden.

    The trouble begins when a taxpayer deliberately fails to pay or underpays the taxes, they legally owe under the Internal Revenue Code. Actions that fit this general description are categorized as tax evasion, which is illegal.

    In modern parlance, however, the legal world uses the phrase “tax evasion” to refer to tax code offenses that are criminal in nature. There is a substantial difference between civil and criminal tax charges.

    Criminal tax charges are harder for the government to prove, as they must typically prove a criminal case “beyond a reasonable doubt,” as opposed to a civil case, where the standard is “a preponderance of the evidence,” or more likely than not. This leads the IRS to pursue civil charges more often than criminal charges, especially if they lack sufficient evidence against the taxpayer. Taxpayers facing criminal charges may also attempt though counsel to plead down from criminal charges into a civil conviction.

    The discrepancy exists because of the heightened severity of criminal tax offenses, the other key difference between criminal and civil. Unlike civil charges, criminal offenses often carry potential sentences of prison time, not to mention much larger potential monetary penalties. Criminal charges are also more highly publicized, which can do serious reputational harm to a defendant, even if they are ultimately found not guilty.

    How Can You Avoid IRS Tax Evasion Charges?

    The best way to defend against criminal tax charges is to prevent them from occurring in the first place. You may have the ability to disclose non substantial errors, provide additional information that was erroneously left out, or correct minor misstatements of facts on your past tax returns solely through amended returns. But if serious badges of fraud exist in your fact pattern the only sure way to receive a pass on criminal tax prosecution is through the federal government’s voluntary disclosure program.

    The voluntary disclosure program does not benefit everyone in the same way. Sometimes, the information that could be disclosed might not buy you as much goodwill with the IRS as you might have hoped. In situations where the government is already aware of the noncompliance you plan to disclose, you may end up doing more harm than good if your voluntary disclosure is not handled property.

    That is why it is important that you never attempt to navigate the process alone. Our dual-licensed Tax Attorneys and CPAs can assess your situation with an eye on your bottom line and an eye on future potential IRS of state taxing authority enforcement action. If you find yourself already the target of an IRS of California criminal tax investigation, we at the Tax Law Offices of David W. Klasing urge you to bring your case to our attention as soon as possible.

    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!

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    Protect Yourself from IRS and California Tax Evasion Charges with the Help of the Tax Law Offices of David W. Klasing

    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.

    To hear more about our services and how we can help you with your tax situation please book a reduced rate initial consultation by calling (800) 681-1295 or better yet schedule online HERE.

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