According to a Department of Justice press release, a South Carolina, man whom was an IRS employee, was recently indicted on several criminal counts related to his alleged filing of false tax returns and attempts to thwart an IRS audit and subsequent criminal tax investigation. This story evidences the serious nature of falsifying a federal tax return, regardless of the amount at issue. If you have failed to file a federal or state tax return for one or more years, or have filed a tax return with knowingly false information, it is in your best interest to contact an experienced tax defense attorney to discuss your options to come into compliance.
Court records reveal that Wayne Garvin, previously of Philadelphia, Pennsylvania, was recently indicted on three counts of tax evasion and two counts of corruptly endeavoring to impair and impede the due administration of the internal revenue laws. Federal prosecutors allege that between 2012 and 2016, Garvin, who was an employee of the IRS during the years in issue, claimed false deductions for a variety of expenses including charitable contributions, expenses related to rental properties, and expenses purportedly related to serving in the U.S. Army Reserves. The IRS and Department of Justice attorneys contend that the expenses for which the deductions were claimed were not actually incurred.
When the IRS notified Garvin that he was being audited for tax years 2013 and 2014, he provided allegedly fraudulent documentation attempting to substantiate the false deductions that he claimed. Department of Justice attorneys’ content that the documentation provided was also fraudulent. When the IRS notified Garvin that his tax returns were being referred for criminal tax investigation, he again submitted the allegedly false documentation to the IRS Special Agent conducting the criminal tax investigation.
If Garvin is convicted, he faces up to five years in federal prison for each count of tax evasion. Additionally, Garvin faces up to three years in federal prison for each count of endeavoring to impede the work of the IRS. A conviction could also lead to Garvin being ordered to serve a period of supervised release upon the completion of any physical incarceration. Lastly, Garvin could be ordered to pay restitution to the IRS, representing the tax loss that he allegedly caused.
The story above should serve as a reminder to taxpayers that regardless of your wealth or societal status, the IRS and Department of Justice will pursue a tax audit, eggshell audit, reverse eggshell audit or criminal tax investigation, or if need be, a criminal prosecution against those who willfully fail to follow the nation’s tax laws. The IRS has beefed up its headcount in units focused on examinations within the past year. With an increase in staffing and exponential increase in funding of the IRS expected to continue, it is in the best interest of anyone with unfiled tax returns or tax returns that are potentially fraudulent to get right with the government as soon as possible in order to avoid 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!
If you have filed a false tax return or have failed to file tax returns as required by law, consulting with a seasoned tax lawyer should be your next move. Together, you and your tax lawyer will determine areas of potential civil or criminal exposure. Next, you will jointly determine the appropriate next steps to bring you into tax compliance. While you are being represented by tax counsel, you won’t have to worry about going up against the IRS or Department of Justice alone.
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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