According to a Department of Justice press release, a Georgia tax return preparer who was convicted of tax evasion was recently sentenced to serve two years in federal prison. This news serves as a stark reminder that no one is above the law, especially those who are supposed to be well-versed in it. If you have failed to file an individual or business tax return for one or more years, or have failed to be truthful about the amount of income or expenses on a filed tax return, it is imperative to seek out the expertise of an experienced tax attorney to establish your options to get back into compliance and mitigate potential risks or a tax investigation or prosecution.
Samir Patel, a tax preparer from Statesboro, Georgia, ran a national return preparation business franchise from 1999 to 2021. Despite his expertise, Patel was convicted of evading taxes on his personal income tax returns for the years 2015 through 2017 by failing to report nearly $1.3 million in income. His omission was made up of almost $1.18 million from his own business, S&W Amusements, which operated coin-operated amusement machines. Patel’s activity resulted in a substantial tax loss to the IRS, amounting to approximately $550,000. In addition to his two-year prison sentence, Patel was ordered to serve three years of supervised release, pay a $95,000 fine, and pay over $550,000 in restitution. Patel's sentencing underscores the gravity and negative consequences of a tax evasion conviction.
This case is a compelling illustration that tax evasion is a serious crime with severe repercussions, regardless of one's knowledge about tax law or occupation. It is important to recognize that the IRS and the Department of Justice are steadfast in their efforts to uncover and prosecute tax fraud and evasion. No one is immune to investigation and potential prosecution.
If you have failed to file a tax return for one or more years or have taken a position on a tax return that could not be supported upon IRS audit, and you find yourself under audit, you should strongly consider speaking with an experienced tax audit defense attorney. Consulting with a seasoned tax lawyer can provide you with the guidance and perspective you need to address any issues proactively and avoid the pitfalls of non-compliance and an audit/investigation.
If you have failed to file a 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 defense 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 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 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!
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.
In addition to our fully staffed main office in downtown Irvine California, the Tax Law Offices of David W. Klasing has unstaffed (conference room only) California-based satellite offices in Los Angeles, San Bernardino, Santa Barbara, Panorama City, Oxnard, San Diego, Bakersfield, San Jose, San Francisco, Oakland, Carlsbad, Sacramento. We also have unstaffed (conference room only) satellite offices in Las Vegas, Nevada; Salt Lake City, Utah; Phoenix, Arizona & Albuquerque, New Mexico; Austin, Texas; Washington, DC; Miami, Florida; and New York that solely handle Federal & California Tax issues.
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. We also now offer a convenient scheduling option, where you can secure David W. Klasing, Esq M.S.-Tax CPA’s undivided attention for a 4-hour consultation at any of his satellite offices.
See our Audit Representation Q and A Library