A former finance director from the Franklin, Kentucky County Schools system has been formally charged with tax evasion as a part of a larger, federal investigation. This story should serve as a reminder to taxpayers that state and federal authorities frequently work together with taxing agencies and their investigators to uncover additional criminal activity. If you have unfiled tax returns for one or more years or have cheated and taken an unsupportable position on your tax returns, (especially where currently under audit) it is in your best interest to contact an experienced tax attorney to develop a strategy to come into compliance.
See Note 1 below to see how we can specifically help
Defendant Failed to Include Stolen Funds in Gross Income
According to local media reports, Lesley Asher Wade was the subject of a federal investigation after she tried to cash a suspicious check. After receiving the tip, the FBI investigated Wade and uncovered that she had embezzled more than $1.5 million while she worked for the school district. She resigned amid the investigation, but the federal investigation caught the attention of the state’s revenue collection agency, who correctly concluded that Wade had not included the $1.5 million in stolen proceeds on her individual tax returns. If convicted, Wade can be sentenced to up to five years in prison.
Understanding the Interplay Between Government Agencies
Some believe that the IRS or state tax authorities work in a silo, without any contact with other law enforcement agencies. This simply isn’t the case. Although the IRS or state taxing agencies are likely not the first number on other federal investigators’ speed-dials, when a financial crime has been committed there is a good chance that certain tax crimes can follow. For instance, someone who embezzled money must include the stolen funds in their gross income for federal and state tax purposes. In virtually all cases of theft, the defendant omits illegal accessions to wealth.
Likewise, when the IRS or state taxing agency conducts an audit or investigation and uncovers evidence indicating that other non-tax crimes may have been committed, they have procedures for contacting the appropriate law enforcement agency.
Knowing When to Contact an Experienced Tax Attorney
Whether you have failed to file a tax return for one or more years in the past or you have been untruthful on a filed tax return, it is in your best interest to work with an experienced tax attorney to get right with the government. Establishing a strategy to come into tax compliance before the IRS or state taxing authority initiates contact is, in most cases, a taxpayer’s most advantageous route. If you have already been notified by tax authorities that your tax return is being audited, you should seek the guidance of an experienced tax defense attorney prior to any interactions with the government. Your tax lawyer will work with you to develop and implement a strategy that keeps your freedom and financial security top of mind.
Contact an Experienced Tax Attorney Today
The tax and accounting professionals at the Tax Law Offices of David W. Klasing have extensive experience representing a diverse group of taxpayers. From individuals to middle market businesses and beyond, our team of zealous advocates will assist in the development of a strategy to help you reach your specific goals and objectives. Whether you are under a tax examination or are in need of tax planning advice, contact the Tax Law Offices of David W. Klasing today, online or by phone at (800) 681-1295, for a reduced-rate consultation.
Here is a link to our YouTube channel: click here!
Regardless of your particular business 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.
Note 1:
As long as a taxpayer that has willfully committed tax crimes (potentially including non-filed returns coupled with affirmative evasion of payment) self-reports the tax fraud (including a pattern of non-filed returns) through a domestic or offshore voluntary disclosure before 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, Kovel CPAs 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!
See our Non-Filer Q and A Library
See our 2011 OVDI Q and A Library
See our FBAR Compliance and Disclosure Q and A Library
See our Foreign Audit Q and A Library
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.
Our office technology allows clients to meet virtually via GoToMeeting. With end-to-end encryption, strong passwords and top-rated reliability, no one is messing with your meeting. To schedule a reduced rate initial consultation via GoToMeeting follow this link. Call our office and request a GoToMeeting if you are an existing client.
