According to a Department of Justice press release, a Georgia man was recently convicted of a variety of federal crimes, including filing false tax returns, wire fraud, and theft of government funds. This story should remind taxpayers that committing tax crimes is not a victimless crime, and federal prosecutors certainly do not treat them as such. If you have failed to file a tax return for one or more years, or have filed a tax return with information that is false, it is in your best interest to contact an experienced tax defense attorney to determine your level of exposure and the steps necessary to bring you into compliance without facing 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!
Court records reveal that Marquet Mattox, of Athens, Georgia, was recently convicted by a federal grand jury after he filed false tax returns on behalf of several trusts requesting millions of dollars in tax refunds. Federal prosecutors alleged that Mattox filed 30 federal income tax returns on behalf of 11 different trusts. The illegal strategy to obtain false refunds was consistent across the filed returns. Mattox claimed that the trusts were paid interest and such payments were subject to federal income tax withholding. In reality, no federal income taxes were withheld. As a part of his scheme, Mattox requested refunds of more than $165 million. The IRS paid only $5 million in refunds before it became suspicious of the filed tax returns. That is when the Criminal Investigations unit of the IRS and the Department of Justice got involved.
Mattox will be sentenced later this year. He faces up to 20 years in prison for each wire fraud count, up to five years in prison for falsely claiming tax refunds, and up to ten years for the theft of government funds. Additionally, Mattox faces up to three years of supervised release, which would commence upon the completion of his prison term. Lastly, Mattox will likely be ordered to pay restitution to the IRS, representing the tax loss caused.
The takeaway from the above story is that the IRS and Department of Justice do not take the filing of false tax returns lightly. It is also important to point out that the dollar value is not as important as the intent to get one over on the government. Taxpayers who attempt to defraud the government out of much less than the defendant in this case have found themselves the subject of a criminal prosecution.
If you have filed a tax return that contains false information or have failed to file a tax return altogether, it is critical to speak with a seasoned tax lawyer to establish your civil and/or criminal exposure. Then, you will work together to determine the best way to move forward and come into tax compliance. Although there is a fair amount of uncertainty in the world of tax, one thing is for certain: the longer you wait to resolve a tax issue, the more severe the potential penalties become. Taking care of a tax issue quickly will allow you to focus on the things that really matter.
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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