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Former Virginia Business Owner Charged with Various Tax Crimes

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Former Virginia Business Owner Charged with Various Tax Crimes


According to a Department of Justice press release, a Virginia man was recently charged with tax fraud after allegedly failing to pay over withheld payroll taxes and intentionally filing false individual income tax returns for several years. This story evidences the potential severe consequences that can come from failing to comply with payroll tax laws or failing to properly file income tax returns completely and accurately. If you have failed to file an income tax return for one or more year, failed to remit withheld payroll taxes from the paychecks of employees, or have filed a tax return that was knowingly false, it is in your best interest to contact an experienced tax defense attorney to develop a strategy to come back into tax compliance without facing criminal tax prosecution.

If you have failed to file an income or employment tax return for one or more years or have taken a position on a tax return that could not be supported upon an IRS or state tax authority audit, eggshell audit, reverse eggshell audit, or criminal tax investigation, it is in your best interest to contact an experienced tax attorney to determine your best route back into federal or state tax compliance without facing criminal 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!

Defendant Accused of Failing to Pay Over Payroll Taxes and Falsifying Tax Return

Court records reveal that James C. Jones, Jr. of Virginia had owned Lifeline Ambulance Service, Inc. for several decades. Tax authorities and prosecutors allege that between January 2008 and December 2009, Jones properly withheld payroll taxes from his employees’ paychecks, but failed to remit such amounts to the IRS, as required by federal law. Jones is also accused of filing false individual income tax returns for tax years 2013 through 2018. From a non-tax perspective, Jones is charged with submitting false applications to the Social Security Administration.

All said, the defendant is charged with tax evasion, filing false individual tax returns, corruptly endeavoring to obstruct the IRS, obstruction of justice and making a false statement regarding Social Security benefits. If convicted, he could spend decades in prison and face several years of supervised release upon the completion of a physical incarceration. Lastly, if convicted, Jones could be required to pay restitution to the IRS, representing the amount of tax loss he is alleged to have caused.

Getting Back into Payroll Tax Compliance After Getting Behind

As the story above clearly demonstrates, the IRS and Department of Justice will not balk when a taxpayer is suspected of having intentionally violated U.S. tax laws. Employers are legally required to withhold, account for, and remit payroll taxes from the paychecks of their employees. Remitted payroll taxes are the government’s largest single source of tax revenue. It should come as no surprise that when a taxpayer is suspected of eroding the fisc, the government response is forceful. Likewise, filing a false tax return generally yields a serious response from the government.

If you have failed to properly file your annual tax return or have fallen behind on your payroll tax obligations, it is in your best interest to work with an experienced tax lawyer to come into compliance. Together, you will work to establish your potential civil and criminal liability. Then, you will jointly map out a path to get right with the government. When working with a seasoned tax attorney, your joint strategy will aim to mitigate the potential negative consequences of an IRS audit or investigation.

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