According to a Department of Justice press release, a New Jersey construction executive was recently sentenced to more than four years in prison after being convicted as part of a tax evasion and bribery scheme. This story illustrates the potentially life-changing repercussions that come along with falling out of federal or state tax compliance. If you have failed to file a tax return for one or more years, or have filed a tax return containing information that is knowingly false, it is in your best interest to contact an experienced tax defense attorney to determine the best strategy to bring you into tax compliance without facing an eggshell audit, reverse egg shell audit, criminal tax investigation, or criminal tax 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!
This story is an update to a blog posting that we brought you earlier this year concerning a tax evasion and bribery scheme undertaken by several individuals involved in construction projects undertaken on behalf of Bloomberg LP. In our previous blog posting, we detailed the sentencing of Anthony Guzzone, the former Director of Global Construction for Bloomberg. If you recall, the defendant in that case was sentenced to serve more than three years in prison for receiving illegal bribes from construction companies who wished to win contracts from Bloomberg. Guzzone also received tickets to the Super Bowl as a part of the bribery scheme but did not report any such amounts as income on his personal tax returns.
The defendant in this case, Vito Nigro, was a senior construction official at Turner Construction Company, one of the firms that paid illegal bribes to Guzzone and others at Bloomberg. Additionally, Nigro solicited illegal bribes from subcontractors who desired to win bids related to work being done at Bloomberg. Federal authorities estimate that Nigro received more than $1.35 million in bribes, all of which he did not report on his federal income tax return. Nigro was sentenced to serve 51 months in federal prison. Additionally, the presiding judge indicated that he would enter an order requiring Nigro to pay restitution in an amount not less than $780,000.
Although not all taxpayers are in positions where they are tempted to solicit or accept millions of dollars in illegal bribes, the key takeaway from this story is much simpler: failing to report all of your income on your individual or business tax returns can result in life-altering repercussions weather from legal or illegal income sources. The potential civil and criminal penalties associated with a criminal tax conviction likely outweigh any potential benefit that could result from falling out of tax compliance.
If you have failed to report all your income or have failed to file a tax return for one or more years, you should contact an experienced tax defense attorney as soon as possible. Together, you will work to identify your potential exposure areas and develop a plan to come into federal and state income tax compliance. Additionally, you will be able to rest easy knowing that you will be represented by a seasoned tax defense attorney during any interactions with the IRS or state taxing authorities.
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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