Tax evasion refers to intentional underreporting of taxable income or criminally avoiding the payment of taxes. As a former CEO in Florida just found out, perpetrators of tax evasion can face serious consequences for their actions.
During Jason Cory’s time as CEO of a Jacksonville-based IT services company, he caused over $1.5 million to be transferred into the bank accounts of a shell company that he controlled. He did not report these transfers on his income tax returns. Furthermore, he went to great lengths to hide his scheme. Accordingly, he has been ordered to serve a prison sentence, three years of supervised release, and pay a costly fine.
If you suspect that you may be charged with a tax crime, consult with our Dual Licensed Criminal Tax Defense Attorneys and CPAs at the Tax Law Offices of David W. Klasing. Call us today at (800) 681-1295.
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.
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 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 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!
Former CEO Convicted for Tax Crimes in Jacksonville, FL
On January 30, 2023, a former CEO in Florida named Jason Cory was sentenced to 32 months in jail for trying to evade his federal income tax obligations. In addition to spending time in prison, Cory will have to serve 3 years of supervised release and pay the government over $600,000 in fines.
Cory was the CEO of an IT services company based out of Jacksonville. Court documents indicate that between 2015 and 2018, he transferred over $1.5 million to the bank accounts of a shell company he controlled called “Gambit Matrix LLC.” Cory asserted that the payments were for consulting services that ultimately were never provided. Instead, he used the money to pay his rent, club memberships, and credit card bills.
The former CEO did not report the payment he received through the transfers to Gambit Matrix on his income tax returns. Furthermore, to conceal his actions, Cory created fake owners of Gambit Matrix, presented false representations to an employer, forged emails, and falsified Internal Revenue Service (IRS) forms.
Examples of Tax Crimes You Can Go to Jail for
Criminal tax investigations may be initiated against suspected perpetrators of tax evasion, tax fraud, and embezzlement. These crimes can come in many forms. For example, people may go to prison if they willfully assist in procuring fraudulent tax returns. This crime can be punished regardless of whether the person required to file the returns knew their documents were falsified.
You may also face criminal penalties for falsifying other types of tax documents to the IRS. For instance, Jason Cory, the former Florida CEO who was recently convicted of tax evasion, was found guilty of falsifying IRS Forms W-9 (Request for Taxpayer Identification Number).
Furthermore, prison sentences may be levied against those who remove, conceal, or deposit commodities or goods for the purpose of evading their income taxes. If you were accused of attempting to hide goods or commodities from the IRS, call our Dual Licensed Tax Attorneys and CPAs for help determining the appropriate course of action.
Possible Mitigation Techniques and Defenses Used by Criminal Tax Defendants
It is best to avoid engaging in any activity that may raise suspicion from the IRS. Still, a conviction for tax crimes can seriously impact your life. However, there are many potential defenses to tax crimes:
Establishing Deceit on Behalf of a Tax Examiner
Our attorneys may be able to defend against accusations of tax crimes by asserting that you were misled as to whether you were being criminally investigated. If this trickery was material to your decision to provide information to an examiner, your Fourth Amendment rights might have been violated.
Prove that Your Allegedly Fraudulent Actions Were Not Intentional
You may also assert that your allegedly fraudulent actions were not taken with criminal intent. When prosecuting tax crimes, the government must prove your guilt beyond a reasonable doubt.
Entrapment
Furthermore, our attorneys may defend against an accusation of tax evasion by asserting that entrapment occurred. If we can prove that a government agent induced you to commit an offense you otherwise would not have committed, this defense may prevail.
Plea Bargains
Finally, we may be able to negotiate a plea bargain for you. If you enter into such an agreement, you will plead guilty to certain crimes in exchange for a lesser sentence.
Determining whether to accept an offer for a plea bargain can be a stressful and complicated task. Fortunately, our experienced dual licensed Criminal Tax Defense Attorneys & CPAs can help weigh all the legal options available to you.
Tax Avoidance vs. Tax Evasion
Tax evasion involves using illegal and often deceitful methods to get out of paying the taxes you would otherwise owe. For instance, intentionally leaving income off your tax returns would constitute tax evasion and could result in significant criminal tax penalties.
On the other hand, tax avoidance involves the use of legal means to lower your tax obligations. For example, you can avoid taxes by claiming a child tax credit or mortgage tax reduction. Furthermore, moving funds into a Health Savings Account (HSA) may reduce your tax obligations.
What to Do During an Audit to Prevent Being Prosecuted for Tax Evasion
If you are being audited by the IRS, you should go into the audit knowing what your potential problems are and knowing what documents may be used to support or disprove your case. If you have a good strategy going into your audit, you may be able to prove that your tax issues are merely accounting and bookkeeping mistakes.
If You Need Help Dealing with a Civil or Potential or Actual Criminal Tax Issue, Contact Our Law Firm for Assistance
If you are looking to minimize the exposure from a civil or criminal tax issue, seek guidance from our experienced Dual Licensed Tax Attorneys and CPAs at the Tax Law Offices of David W. Klasing by calling (800) 681-1295 today or schedule online here to book a reduced rate initial consultation.
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 IRStaxauditor’sss 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
- 5 Ways to Respond to 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 allegation
