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According to local media reports, a former Chicago Alderman has been sentenced to serve 18 months in prison for his role in a tax evasion scheme. This story is a clear example that regardless of age or status, the IRS and Department of Justice will not hesitate to bring criminal charges for tax-related crimes. If you have failed to file a tax return or have taken illegal steps to avoid the payment of tax, it is in your best interest to contact an experienced tax defense attorney to start the process of coming into tax compliance.
This story is an update to a blog posting that we brought you back in 2016. Edward Vrdolyak, a former 10th Ward Alderman received a large sum of money related to the settlement of a lawsuit against several tobacco companies in the 1990’s.
As we indicated in our story that we brought you earlier this year, the criminal indictment against Vrdolyak alleged that Individual B, a partner in a law firm that led the lawsuit against the tobacco companies, offered to pay Vrdolyak over $65 million in legal fees from that case. Vrdolyak agreed to share a portion of that amount with co-defendant Daniel Soso. Soso was charged with tax evasion relating to, among other things, the income not reported from his share of the tobacco lawsuit legal fees. A superseding indictment added Vrdolyak to Soso’s tax evasion litigation earlier this month.
Vrdolyak was indicted and convicted on one count of tax evasion and one count of impeding the Internal Revenue Service. But this wasn’t Vydolyak’s first rodeo when it comes to federal charges. In 2008, he was charged with and pled guilty to a single count of mail fraud. That litigation also stemmed from a plan for Vrdolyak to split a payoff. In that instance, the payoff was tied to the sale of Chicago real estate.
In addition to being ordered to serve 18 months in federal prison, Vrdolyak was ordered to serve two years of supervised release. Additionally, Vrdolyak will be required to pay $40,000 in restitution to the IRS to make up for a portion of the tax loss that he caused.
At the time of his sentencing, the defendant in this case was 82 years old and in need of constant medical care. Nonetheless, the IRS and Department of Justice did not let up in his criminal prosecution. This should serve as a reminder to taxpayers who have not been compliant with federal or state tax laws that regardless of your age or status, the laws apply equally to everyone.
If you have failed to file a tax return or have taken a position on a tax filing that is untruthful and could not be supported upon examination, it is in your best interest to contact an experienced tax defense attorney. Working together with your tax lawyer, you can establish the pertinent facts of your case and decide the most effective and efficient path forward to get right with the government.
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!
We also have lots of success with eggshell audits aimed at detecting skimming and defending IRS and California criminal tax investigations.
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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