Awards & Recognition
In Southern California’s heart, Irvine emerges as a city with a meticulously crafted urban landscape that fosters innovation and enterprise. Renowned for its meticulously planned streets and bustling business districts, Irvine stands as a hub of economic activity. From cutting-edge technology firms to burgeoning startups, the city hosts diverse businesses contributing to its vibrant economy. Within this dynamic environment, the importance of meticulous compliance with IRS and California state tax laws cannot be overstated.
At least four different agencies conduct tax audits of Irvine businesses and residents. These agencies are the Internal Revenue Service (IRS), which audits federal returns and other tax forms, and a collection of California tax authorities: The Franchise Tax Board (FTB), the Employment Development Department (EDD), and the California Department of Tax and Fee Administration (CDTFA). These agencies now administer the tax laws once enforced by the California Board of Equalization (BOE).
Amidst Orange County’s rapid economic evolution, the IRS Voluntary Disclosure Practice offers a crucial lifeline. For taxpayers who may have inadvertently missed their complete IRS or California state tax compliance obligations or made intentional discrepancies, the voluntary disclosure practice provides a pathway to rectify these errors. It not only softens the potential civil penalties but crucially eliminates the risk of criminal tax prosecution, ensuring that entities and individuals can continue their endeavors with renewed confidence.
At the Tax Law Offices of David W. Klasing, our dual-licensed Orange County & Irvine Voluntary Disclosure Attorneys and CPAs offer experienced guidance through the IRS Voluntary Disclosure Practice (VDP). This program is essential for individuals who have willfully understated their Federal tax liabilities. It provides a systematic and secure avenue to rectify their tax status while avoiding criminal tax prosecution.
Like the IRS, the State of California’s Franchise Tax Board (FTB) and the California Department of Tax and Fee Administration (CDTFA) provide a method for non-compliant taxpayers to regain compliant status by coming forward with the details of their failure to comply with the California state tax code. The path to voluntary disclosure to the FTB depends on whether you are an in-state or out-of-state filer. We are committed to assisting in making sincere, comprehensive, and timely disclosures to the IRS and California state tax authorities, which includes arranging for the payment of owed taxes, interest, and penalties and cooperating with the tax agencies to determine the correct tax liability.
Conveniently located in downtown Irvine, CA, our Orange County tax office serves taxpayers throughout the region. To set up a reduced-rate initial consultation, call our Irvine office at (949) 229-3537 or (888) 637-7690 or contact us here online.
What are the Benefits of Voluntary Disclosure?
Shielding from Criminal Tax Charges: A properly executed voluntary disclosure to the IRS can shield taxpayers from criminal tax charges related to their disclosed non-compliance, effectively averting the specter of criminal tax prosecution. In the interest of efficient tax system administration, the IRS has historically granted leniency to taxpayers who voluntarily step forward, fully disclose their infractions, and commit to paying penalties. However, the approach to disclosure should be tailored to the taxpayer’s risk profile.
It’s imperative to emphasize that embarking on voluntary disclosure should always involve the guidance of an experienced criminal tax defense counsel and utilizing a Kovel Accountant. The expertise of a Kovel Accountant is particularly crucial for safeguarding constitutional rights, preserving attorney-client privilege, and protecting attorney work product. At the Tax Law Offices of David W. Klasing, our uniquely qualified and extensively experienced Criminal Tax Defense Tax Attorneys & Kovel CPAs provide a one-stop shop to efficiently achieve the optimal and predictable results that simultaneously protect your liberty and net worth. See our Testimonials to see what our clients have to say about us!
Fostering Compliance Through Incentives: Given that the U.S. tax system relies heavily on taxpayer self-reporting, voluntary disclosure is a cornerstone in promoting compliance. To incentivize ongoing taxpayer adherence, even in the wake of compliance failures, the IRS has established policies offering benefits to individuals who proactively disclose their past non-compliance, file accurate returns for the applicable years, and make full payments or establish approved payment plans. Conditional on the disclosure being voluntary, comprehensive, accurate, and legally sound, the IRS refrains from recommending criminal tax prosecution for these taxpayers. Following are some of the more general benefits of voluntary disclosure:
- Demonstrating Ethical Commitment: Voluntarily disclosing non-compliance underscores a company’s dedication to upholding ethical standards, fostering integrity, and building stakeholder trust;
- Promoting a Positive Corporate Culture: Willingness to disclose potential misconduct cultivates a culture of accountability and transparency, boosting employee morale and productivity;
- Risk Mitigation: Voluntary disclosure allows companies to address issues preemptively, minimizing damage to reputation and potential legal repercussions;
- Preserving Business Relationships: Proactive disclosure helps safeguard relationships with clients, partners, and stakeholders, demonstrating a commitment to ethical business practices;
- Showcasing Robust Compliance Programs: By actively addressing and disclosing misconduct, companies highlight the effectiveness of their compliance programs, reinforcing their reputation;
- Enabling Proactive Management: The initiative to disclose misconduct empowers companies to manage issues proactively, averting the need to react to external investigations and
- Possibility of Reduced Penalties: Regulatory authorities may view voluntary disclosure favorably, potentially resulting in reduced penalties contingent on the circumstances and regulatory framework.
In essence, voluntary self-disclosure offers many potential benefits beyond regulatory compliance. It is a strategic tool in a company’s broader compliance program, promoting transparency, enhancing reputation, mitigating risks, and potentially reducing penalties. Please don’t hesitate to contact us via phone call at (949) 681-3502 or (800) 681-1295 or schedule a reduced-rate initial consultation here.
Eliminating Criminal Tax Exposure in Irvine
The looming threat of criminal tax prosecution can result in countless sleepless nights, especially if you have intentionally cheated on your past tax returns. However, pathways exist to rectify past discrepancies and regain compliance while virtually eliminating the risk of criminal tax prosecution if the terms of the program are strictly complied with.
Amended Tax Returns: This involves revisiting and correcting previously filed tax returns. For federal adjustments, taxpayers would use Form 1040-X. While this seems straightforward, there’s a catch: the tax authorities sometimes perceive amended returns as a potential criminal tax admission rather than a genuine effort to correct an oversight. This at best can lead to audits, at worst, criminal tax investigation / prosecution.
Voluntary Disclosure: IRS Criminal Investigation (CI) has quietly offered the Voluntary Disclosure Practice. CI takes timely, accurate, and comprehensive voluntary disclosures into consideration when deciding whether or not to recommend criminal tax prosecution. Although a voluntary disclosure won’t automatically grant immunity from criminal tax prosecution, if the terms of the program are met, it offers a nearly guaranteed pass on criminal tax prosecution.
Checklist for Voluntary Disclosure:
- Disclose truthfully, appropriately, and comprehensively to the CI;
- Make suitable good faith arrangements with the IRS to pay tax, interest, and applicable penalties and
- Collaborate with the IRS to determine accurate tax liability.
Ensure timely disclosure by confirming the following:
- The IRS has not initiated a criminal tax investigation or civil tax audit;
- The IRS has not acquired knowledge from third-party sources (e.g., informant, governmental agency, John Doe summons) and
- The IRS has not gathered data from criminal tax enforcement actions relevant to non-compliance (e.g., search warrant, grand jury subpoena).
Let David W Klasing Be Your Guide to Domestic and Offshore Voluntary Disclosures
At the Tax Law Offices of David W. Klasing, our dual-licensed Irvine Voluntary Disclosure Attorneys and CPAs navigate the complexities of various federal and California state voluntary disclosures, including domestic, offshore, CDTFA, and FTB voluntary disclosures, streamlined procedures, and delinquent FBAR and international information return submission procedures. As long as a taxpayer who has willfully committed tax avoidance (potentially including non-filed foreign information returns coupled with affirmative evasion of U.S. income tax on offshore income) self-reports the tax non-compliance 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.
Our award-winning, nationally recognized team brings nearly three decades of collective experience in tax and business law. With a diverse professional background, we are well-positioned to assist individuals and businesses with even the most intricate tax issues. David W. Klasing, with an unblemished A+ rating from the Better Business Bureau and a perfect 10.0 AVVO score, epitomizes unwavering dedication to providing exceptional representation in IRS and California state voluntary disclosures, as evidenced by our long winning record.
We will take immediate action to assess, then correct, your tax compliance record, negotiate/cooperate with the IRS and relevant California State Taxing Authority (where appropriate), and attempt to mitigate your criminal tax exposure in dealing with a standard civil audit, high-risk Eggshell and Reverse Eggshell Audits, or Criminal Tax Investigation. Contact us today to determine your best course of action to return to tax compliance and avoid facing criminal prosecution. Please don’t hesitate to contact us via phone call at (949) 681-3502 or (800) 681-1295 or schedule a reduced-rate initial consultation here.
Our Irvine Office is Conveniently Located at:
2601 Main St. Penthouse Suite
Irvine, CA 92614
Telephone: +1 949-681-3502; 800-681-1295
