According to a Department of Justice press release, a former Washington, D.C. attorney who was recently convicted on charges related to securities fraud, also pleaded guilty to tax charges related to the failure to file an income tax return and paying the associated taxes. This story is a good example of an all too common occurrence where crime that is not related to tax, nevertheless results in a criminal tax investigation and prosecution.
Court documents reveal that Brynee Baylor, a former D.C. attorney, pleaded guilty last week to intentionally failing to file her 2010 individual income tax returns and paying the taxes that would have been associated with such filing. As a part of her guilty plea, she admitted that she would have paid approximately $79,000, if she had filed and paid her taxes, as legally required.
Defendant Convicted of Securities Crimes Before Tax Charges
According to the Department of Justice, a jury had already convicted Baylor of one count of conspiracy to commit securities fraud, one count of securities fraud, and five counts of first-degree fraud under the laws of the District of Columbia.
As a part of the activity that resulted in her conviction for securities fraud, Baylor conspired with a Pennsylvania man and the company that he owned to recruit certain investors into a fake trading program. Like many of the fraudulent investment scams that have come to light over the years, investors were promised hefty profits with relatively no potential downside.
Unsurprisingly, the Securities and Exchange Commission sued Baylor and a handful of others for committing fraud in connection with the fake trading program that she had helped establish. In the process of investigating those crimes, the IRS was brought in and it was determined that Baylor had failed to timely file certain tax returns.
Defendant Faces Decades in Prison, Additional Monetary Penalties
Baylor’s sentencing is scheduled for later this fall. She faces up to one year in prison for the count related to failing to file a tax return. Additionally, she can spend up to five years in a federal prison for the conspiracy count, up to two decades in prison for the securities fraud count, and up to a decade in prison for each of the first-degree fraud counts that she was convicted of. Finally, Baylor will likely also be ordered to serve a sentence of supervised release and face monetary penalties such as restitution.
Government Agencies Work Together to Secure Convictions
Although many do not engage in securities fraud, this story is a reminder that the IRS does not operate in a vacuum. Many Americans deal with different parts of the federal and state governments on a regular basis, whether we desire to or not. Additionally, our taxes may be open to scrutiny when we least expect it. For instance, couples engaged in a divorce may have their finances looked at as a part of the mediation or adjudication process, which can result in an IRS or state tax investigation. If you have failed to file a tax return in a timely manner or believe that a portion of your filed tax return may be incorrect, it is in your best interest to contact an experienced tax defense attorney as soon as possible.
The tax and accounting professionals at the Tax Law Offices of David W. Klasing have extensive experience in representing taxpayers from varying backgrounds and financial situations. Whether you have not filed a tax return in over a decade or simply forgot to file your last year’s return, our team of zealous advocates is poised to assist in the development of a strategy that will keep your physical and financial well being top-of-mind. Do not let the possibility of criminal failure to file charges keep you up at night. Contact the Tax Law Offices of David W. Klasing today for a reduced-rate consultation.
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Questions and Answers for Criminal Tax Representation
- When tax defense counsel parallels tax crime investigation
- Guilty of tax obstruction by backdating documents?
- To be found guilty of tax obstruction must a person actually be successful in impeding the IRS’s functions?
- Help! The Document I Gave the IRS Had False Information
- Tax crime aiding or assisting false return IRC §7206(2)
- What is the crime known as tax obstruction § 7212?
- What is the difference between tax perjury and tax evasion?
- What is the tax crime commonly known as tax perjury?
- What is a Klein Conspiracy?
- Increased possibility of civil action in IRS investigation
- Am I Guilty of Tax Evasion if the Law is Vague?
- What happens if the IRS thinks I committed tax crimes?
- What are ways to defend against a tax evasion charge?
- Difference between criminal tax evasion and civil tax fraud
- What accounting method does the IRS use for tax fraud
- Can I Change Accounting Method to the Accrual Method
- What is the willfulness requirement for tax evasion?
- I didn’t know I committed tax fraud. Can I get off?
- Concealed assets from IRS. Can I avoid tax evasion charges
- How government proves I willfully engaged in tax evasion
- What is the venue or court where a tax crime case is heard?
- Must the IRS prove tax crimes beyond a reasonable doubt?
- Is it a crime to make false statements to the IRS?
- Will the IRS overlook my tax evasion if it’s minor?
- Failed to tell IRS about my nominee account
- Audit risk with cash based business transactions
- How to defend a client charged with tax evasion
- Is it tax evasion if I didn’t file income tax return?
- Government says I attempted to evade my taxes. Now what?
- I forgot to pay my taxes or estimated tax. Is this a crime?
- Government proof I “willfully” failed to pay taxes
- How to respond to willful tax evasion charges
- Being audited after using a tax professional
- Rules for what an IRS agent can do while investigating me
- How tax preparers, attorneys and accountants are punished
- How the IRS selects tax crime lead for investigation
- How does the IRS prosecute suspected tax crimes?
- Does IRS reward informant leads for suspected tax crimes?
- How the government proves deficiency in a tax evasion case
- Do prior tax crimes factor into new IRS tax convictions?
- Requesting conference before investigative report is done
- Requesting conference after IRS Special Agent Report
- What are my rights during an IRS criminal investigation?
- Avoid prosecution for tax crime with voluntary disclosure?
- Defense tactics that make it hard for to prove willfulness
- How a tax attorney can stop your criminal tax case?
- What can you generally tell me about tax crimes?
- Continuing filing requirement with investigation pending
- Federal criminal code crimes that apply to tax issues
- Penalty for making, subscribing, and filing a false return
- CID special agent’s report for criminal prosecution
- What is the discovery process in a criminal tax case?
- What the IRS includes in indictment for tax case
- What is the hardest element of a tax crime to prove?
- IRS methods of gathering evidence to prove tax crime
- What does a grand jury do in IRS tax crime prosecution?
- Failure to keep records or supply information
- Failure to make a return, supply information, or pay tax
- What is attempting to evade payment of taxes?
- What is income tax evasion and how is it punished?
- What is attempted income tax evasion?
- What is the crime of failure to pay tax? What is punishment
- Crime of making or subscribing false return or document
- Criminal Investigation Division investigation tactics
- Tax crimes related to employment tax forms and trust funds
- Tactics to defend or mitigate IRS criminal tax charges
- How the IRS generates leads about suspected tax crimes
- What is the crime ”evasion of assessment” of tax?
- Specific examples of “attempting” to evade tax assessment
- What is the so-called Spies evasion doctrine?
- Does overstating deductions constitute tax evasion?
- Is it tax evasion if my W-4 contains false statements?
- IRC §7201 attempt to evade vs. common-law crime of attempt
- What are the penalties for Spies tax evasion?
- How government proves a taxpayer attempted tax fraud
- What is a tax that was “due and owing.”
- What is evasion of assessment for tax liability?
- Is evasion of assessment different from evasion of payment
- Does the IRS have a dollar threshold for tax fraud?
- What is the IRS burden of proof for tax fraud convictions?
- Are Tax Laws Constitutional?
- What is the source of law that defines tax evasion?
- Does section 7201 create two distinct criminal offenses?
- Does tax evasion definition include partnership LLC
- What if I helped someone else evade taxes?
- Is it illegal to overstate deductions on my tax return?
- Is it illegal to conceal bank accounts from the IRS?
- Do later losses justify prior deductions?
- Common reasons the IRS and DOJ start investigations
- What is the Mens Rea component of tax crimes?
- What is a proffer agreement and what are the risks?
- Why to have an attorney to review a proffer agreement
- Why enter into a proffer agreement?
- Limited use immunity from proffer agreements
- Difference between civil and criminal fraud allegations
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
