According to a Department of Justice press release, an Arizona accountant who recently pleaded guilty to tax evasion was sentenced to serve 18 months in federal prison. Many Americans mistakenly believe that the IRS and Department of Justice only go after those who are wealthy or have celebrity status. This story, and many just like it, provide evidence contradicting that notion. If you have failed to file a tax return for one or more years, or if you have filed a tax return with information that was not complete or accurate, you should consider contacting an experienced tax defense attorney to establish your exposure and determine the most efficient method to come into tax compliance.
This story is an update from a post that we made earlier this year. If you recall, Kent Jensen, 58, a resident of Gilbert, Arizona, worked as a financial consultant between 2014 and 2015. During those years, Jensen established several nominee bank accounts and directed the payment of his fees into such accounts from which he proceeded to pay for his personal expenses. Using the nominee account structure, Jensen was able to avoid reporting the income he had earned on his federal income tax returns. The IRS and Department of Justice estimated that Jensen failed to pay approximately $99,000 in federal income taxes.
In addition to his 18 month federal prison sentence, Jensen was ordered to serve three years of supervised release, to commence upon the end of his physical incarceration. Jensen was also ordered to pay $99,000 in restitution, representing the tax loss that he caused.
The defendant in the case detailed above caused a tax loss of less than $100,000. The relatively low amount in controversy evidenced the IRS and Department of Justice’s willingness to investigate and criminally prosecute tax crimes, regardless of the status of the taxpayer or the amount at issue. Simply put, if you have cheated on your taxes, you are at risk for severe civil and criminal repercussions.
As we indicated above, if you have failed to file a tax return in the past or have filed a tax return that contains false information, you are at risk for an IRS audit, criminal investigation, or in certain circumstances, criminal prosecution. There is only one certainty in taxes: ignoring your failure to file a return or previously filed false tax returns will not reduce the potential of being caught. Working with an experienced tax defense attorney will allow you to jointly assess your exposure and develop a strategy to get you right with the government. In doing so, you will be able to sleep better at night knowing that you are in capable hands and that you won’t have to go up against the IRS alone.
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!
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.
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