In an update to a story that we brought to you earlier this year, a taxpayer in Florida was recently sentenced to serve three years in a federal prison for intentionally thwarting IRS collection efforts. Many taxpayers who owe back taxes take steps to avoid paying their tax bill. This taxpayer discovered how such actions can lead to serious criminal charges and in his case, prison time. If you are behind on your tax payments or have failed to file a tax return for one or more years, it is in your best interest to contact an experienced tax attorney to discuss your options to come into compliance.
According to a Department of Justice press release, 67 year old Dennis Nagle was ordered to serve 36 months in a federal prison after being convicted of corruptly obstructing IRS collection efforts earlier this year. As we previously reported, Nagle owed over $400,000 in federal taxes as of 2014. Not unlike any other case of unpaid taxes, the IRS commenced collection efforts, which culminated in the garnishment of Nagle’s wages and the levying of his bank accounts. Nagle took various steps to thwart the IRS collection efforts, including advancing baseless claims that he was not legally subject to such efforts.
Prosecutors alleged, and a jury agreed, that Nagle obstructed the IRS by attempting to pay his IRS debt by sending the IRS checks that were drawn on a bank account that no longer existed. Additionally, Nagle asserted to his employer that his wages should not be garnished because he was not subject to the collection efforts, altogether. Lastly and in what appears to have been a last-ditch effort, Nagle threatened criminal charges against IRS collections officers.
In addition to the three-year term of imprisonment, Nagle was also ordered to serve three years of supervised release. Additionally, Nagle was ordered to pay restitution to the IRS in the amount of $221,502, representing the tax that he owed plus interest and penalties.
Finding yourself with a large tax bill is not uncommon but taking the steps that the defendant did in this case to avoid paying his taxes is certainly not the route that a taxpayer with adequate legal counsel would take to clear up their tax debt. An experienced tax defense attorney works with their clients to develop a strategy to pay down or eliminate their IRS debt.
Although a large tax bill can sometimes feel like an insurmountable debt to pay off, there are multiple programs and strategies that can be explored in determining what the right move for your situation is. Many taxpayers who owe large sums of tax live in a world of uncertainty, not knowing when the IRS will garnish their wages or levy their bank accounts. Working with a seasoned tax attorney will take the uncertainty out of the equation and allow you to focus on getting on with your life.
Regardless of your business or estate 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.
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