Recently, a former director of a notable defense contractor pled guilty in federal court to charges of tax evasion stemming from personal returns over a ten-year period. The allegations suggest that the defendant intentionally did not report all the income he earned over consecutive years.
Court documents show that the plea comes as part of an arrangement between the defendant and the prosecution. We do not know the details of this agreement and likely will not until sentencing follows. While plea deals may be a useful tool in some circumstances, individuals facing criminal tax charges should heavily consider all their options with the help of a dual licensed Criminal Tax Defense Attorney & CPA before making any sort of deal.
The dual-licensed Tax Attorneys and CPAs at the Tax Law Offices of David W. Klasing have years of experience battling the IRS. With our help, you may be able to defend against existing criminal tax charges or even prevent them from being pursued in the first place. To find out more, call us at (800) 681-1295 or better yet, book a reduce rate initial consultation HERE.
On Wednesday, February 16, Charles D. Squires pled guilty in federal court in the District of Columbia to tax evasion charges. Squires, the former director of operations and chief executive officer for a defense contractor that did business with the United States Department of Defense, was accused of failing to report all of the income he received from his employer over several years.
The indictment alleged that Squires withheld information about certain parts of his compensation packages spanning several taxable years from 2010 through 2019. The total amount that Squires allegedly concealed from the government was estimated to be over $1.8 million. This figure translates to roughly $660,000 in lost tax revenue to the federal government.
According to court documents, Squires pled guilty to one charge of tax evasion as part of a plea deal. Squires will face sentencing on these charges at a later date. Sentencing guidelines indicate that the government could pursue up to five years of prison time, on top of supervised release, restitution, and additional monetary penalties.
According to the IRS’ announcement of the plea via press release, the IRS’ Criminal Investigations Division (IRS-CI) was assisted in the investigation by the Joint Chiefs of Global Tax Enforcement (J5). The J5 is a cooperative effort between the tax authorities of the United States, Australia, Canada, the Netherlands, and the United Kingdom.
James Lee, the head of the IRS-CI, touted the plea as a victory for the J5, as it was a “truly international investigation.” Lee went further to say that he expects more successes from the J5 in the future. As Lee put it, “Criminals should be worried – this case is an example of what can happen when we all work together.”
The federal government has recently shown an increased appetite for the investigation and prosecution of illicit tax schemes that go outside the country's borders. This cooperative effort may aid them in their ability to target overseas assets that taxpayers had failed to report in previous years. As we can tell from the recent Squires case, this effort can go back multiple years to find noncompliance.
The best way to prepare your defenses against an increasingly aggressive IRS-CI seeking out past noncompliance is to obtain competent and resourceful tax law assistance from the dual-licensed Tax Attorneys and CPAs at the Tax Law Offices of David W. Klasing.
In many cases, taxpayers who face charges of tax evasion or other criminal tax offenses will end up agreeing to a plea deal. People facing tax charges may receive favorable sentencing recommendations by accepting a plea arrangement. The government may drop other charges in exchange for the defendant pleading guilty to one or two. In other cases, the defendant may plead guilty to a lesser offense than the one with which they were initially charged.
For these reasons, plea deals may benefit some in certain situations. However, before rushing to accept the first plea deal that comes through the door, you should be aware of some critical information.
You should first consider why the government is offering the plea deal. Plea deals save the government the time and expense associated with a criminal trial. They also secure a conviction, which looks good in a press release. But these may not be the only reasons why the prosecutor offers a deal in every case. To successfully prosecute a defendant for criminal tax offenses, the government must prove their case “beyond a reasonable doubt.” This is a substantial burden to meet, and in many cases, the government may be concerned that they have not gathered enough evidence to meet it.
If you agree to a plea deal wherein the prosecutor agrees to recommend lighter sentencing, the recommendation is all that you get. The prosecutor’s recommendation, while influential, is not binding on the court. The judge is free to sentence the defendant as they see fit within the statutory guidelines. Therefore, it is possible that you could agree to plead guilty without reaping any of the benefits of the agreement.
You are not obligated to accept the first plea agreement offer that you receive. Never sign or agree to anything without first having your tax attorney consider the offer on the table and advise you of the strategy that will serve your best interests.
To hear about our dual-licensed Tax Attorneys and CPAs’ vigorous criminal tax defense services, call our offices today at (800) 681-1295 or better yet, book a reduced rate initial consultation HERE.
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!
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.