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Former California Labor Union Leader and Husband Charged with Tax Crimes

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    According to multiple local news outlets, the former leader of California’s largest labor union and her husband were recently charged with multiple criminal counts, including several counts of tax evasion after allegedly failing to report more than $1.4 million in income. This story should remind taxpayers that regardless how powerful you are, the tax laws apply to all Californians and Americans equally. The IRS and California state taxing authorities will not hesitate to investigate and, if necessary, pursue criminal tax charges against those who willfully violate tax laws. Taxpayers who have failed to file a tax return or have filed a false tax return should consult with an experienced tax defense attorney as soon as possible to determine their options to come back into tax compliance.

    Defendant Allegedly Failed to Report Over $1M in Income

    Jose Samayoa Moscoso and his wife, Alma Hernandez, were charged with tax evasion, among other charges. Hernandez, who served as the executive director for the Service Employees International Union California State Council recently stepped down from her position. State prosecutors allege that Moscoso and Hernandez failed to report more than $1.4 million in taxable income between 2014 and 2018. Additionally, Moscoso is alleged to have paid employees at a business that he owned “under the table” and failed to file the appropriate quarterly employment tax returns with the State of California.

    The couple faces a lengthy state prison sentence if they are convicted. Additionally, the charges that were recently announced do not address potential federal income tax evasion issues that typically accompany similar state investigations.

    Getting Right with the Government After Filing False Tax Returns

    The story above is another example of the notion that tax authorities are not concerned with an individual’s status or position within society. If you have failed to file a tax return or have filed a tax return with inaccurate information contained within it, your societal status will not help or hurt your chances of being targeted by an investigation or criminal prosecution. Thus, it is critical that you clear up any potential looming tax noncompliance matters as soon as possible.

    Working with an experienced tax defense attorney, you will first identify the pertinent facts of your case and determine the level of exposure that you face. Then, you will jointly decide on a path to bring you into state and/or federal income tax compliance. Both state and federal tax agencies have been beefing up their examination efforts. For many taxpayers, it is only a matter of time until latent tax noncompliance is discovered. Stop losing sleep over unfiled or falsified tax returns. Contact a seasoned tax lawyer today.

    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 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!

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