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.
Defendant Took Illegal Steps to Obstruct IRS Collection Efforts
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.
Seeking the Assistance of a Tax Attorney When You Owe the IRS
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.
We Are Here for You
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.
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.
Questions and Answers on Unfiled Back Taxes
- What are the common issues that non-filers face?
- Risk of audit after filing delinquent prior year returns
- Can substitute return deficiency be discharge in bankruptcy
- Substitute return modified by subsequent delinquent return?
- Do I file every delinquent return for each missing year?
- How does the IRS identify non-filers?
- How important is it to the government that I didn’t file?
- Delinquent tax return criminal prosecution likelihood
- Will I get a refund on a delinquent tax year?
- What happens after enforcement action has begun?
- Should I use an attorney, EA or a CPA to represent me when I re-enter the tax system?
- Why do people drop out of the tax system?
- What happens after the IRS identifies me as a non-filer?
- IRS has not previously filed substitute returns
- Tax attorney representation when re-entering tax system
- How will the government force me to file returns?
- What penalties can IRS impose on delinquent tax filings?
- What should I do to re-enter the tax system?
- Can Law Office of David W. Klasing help me re-enter system?
- Will tax collection taken by authorities affect my credit
- I concealed bank accounts from the government
- Forgetting or failing to file tax return
Questions and Answers About Tax Relief and Tax Resolution
- What to do if there is an IRS discrepancy in amounts owed?
- What are IRS allowable expenses?
- Does the IRS allow other expenses as necessary expenses?
- What do I do if I owe payroll taxes?
- Can I set up a payment plan for unpaid payroll taxes?
- How is our tax relief law firm different?
- What are the failure to pay tax penalties?
Questions and Answers on Offer in Compromise
- Do I need to provide financials if the IRS requests them?
- How does the IRS calculate my income?
- David W. Klasing Offer in Compromise help
- How long does it take to get an Offer in Compromise?
- What exactly is an Offer in Compromise?
- How exactly do I apply for an Offer in Compromise?
- How to protect my Offer in Compromise from being revoked
- Prerequisites to obtaining an Offer in Compromise
- Form 433-A (OIC) Collection Information Statement with OIC
- When will the IRS entertain an Offer in Compromise?
- What are the ways Offers in Compromise can be paid
- Objectives of the IRS Offer in Compromise Program
- Will Offer in Compromise affect criminal tax liability?
- Offer in Compromise includes liabilities prior to marriage
- What payments are required with an Offer in Compromise
- Will an Offer in Compromise affect installment agreement
- Offer in Compromise effect on statute of limitations
- Filing Offer in Compromise affect collection actions?
- How will I know if my Offer in Compromise is accepted?
- What happens when IRS finds something wrong with my offer
- Why was my offer found to be unacceptable?
- Is an accepted Offer in Compromise public record?
- What legal effects does entering into an Offer in Compromise have on a taxpayer?
Questions and Answers on Tax Liens, Levys and Tax Garnishments
- Spouses tax liability at life and death
- 2016 Changes to IRS Collections
- What Do You Do If You Owe Money to the IRS and You Cannot Pay the Balance Due Right Away?
- How long can the IRS collect on a past due debt?
- Do You have Unfiled Personal Income California Tax Returns?
- What are some events that can suspend or extend the collection statute allowing the IRS more time to collect on an outstanding tax debt?
- What happens when the collection statute expires?
- How much time does the CA Franchise Tax Board have to collect on an outstanding tax debt?
- Frivolous Collection Due Process Hearing Requests
- IRS Collection Notices
- What do you do if you owe sales tax to the CA Board of Equalization?
- When should I file a Collection Appeal Protest (CAP)?
- Differences between a CDP Form 12153 and Form 9423
- My Employer Received Form 668-W, Notice of Wage Garnishment
- Can the IRS levy my Social Security benefits?
- How to release the wage levy?
- What is a federal tax lien?
- What is the effect of a federal tax lien?
- Can a taxpayer challenge the filing of a federal tax lien?
- How do I get a tax lien removed or released?
- What do I do if the IRS issues a bank levy?
- How to Release a Bank Levy?
- What if I am an employer and the levy attached to payroll?
- What additional information does the IRS need from me?
- What is a Collection Due Process (CDP) Hearing?
- What is an Equivalency Hearing?
- I received a notice from the IRS, what do I do?
- I moved and never received notices from the IRS
