According to a Department of Justice press release, a Las Vegas businesswoman recently pleaded guilty to filing a false tax return as a part of a scheme to artificially lower taxes related to the income of her business. This story should remind taxpayers that while there are legal and effective methods to structure your tax affairs, engaging in fraudulent behavior to reduce your tax bill will generally harm more than it helps.
If you have failed to file a tax return for one or more years or have taken a position on a filed tax return that was fraudulent, it is in your best interest to discuss your tax profile with an experienced tax defense attorney and remove the risk of criminal tax prosecution as long as you are willing to knock on the IRS’s door before the bang down yours. Act today before you face an audit, eggshell audit, reverse egg shell audit, criminal tax investigation, or 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 Graciela Rueda Alvarez was the owner and operator of All Hose Inc. and All Hose South. Alvarez’s businesses operated out of the Las Vegas area and provided customers with various types of hoses for industrial use. Alvarez admitted that between 2013 and 2016, she moved over $950,000 of income earned by her two businesses into personal bank accounts without including the income when preparing her individual federal income tax returns. IRS investigators and Department of Justice prosecutors alleged that Alvarez caused a tax loss of more than $210,000.
Alvarez’s sentencing has been scheduled for the fall. She faces up to three years in federal prison. Additionally, Alvarez could be ordered to serve up to one year of supervised release to commence upon the completion of any physical prison sentence. Lastly, Alvarez has already agreed to pay restitution in the amount of $458,728, representing back-taxes, interest, and penalties.
The defendant in the story above is not unlike the thousands of business owners and other individuals investigated and prosecuted for tax crimes every year. As the IRS and the technology that it employs advance, the chances that those engaged in fraudulent tax activities are discovered also grow especially with the 87,000 new agents they are hiring. As we indicated at the outset of this article, it is not illegal to work with an experienced tax planning attorney to structure your business and personal affairs in a manner that lawfully reduces your tax bill. On the other hand, it is illegal to intentionally fail to report all your taxable income, exaggerate expenses, or to fail to file a tax return altogether.
If you have failed to file a tax return, have under-reported income, or claimed deductions for expenses that were not in reality incurred or were personal in nature, you should consult with an experienced tax defense attorney to discuss your options to come into tax compliance. Together, you will work with your seasoned tax attorney to identify areas of exposure and jointly decide on a strategy to bring you into compliance, keeping your physical and financial freedom top of mind. All the while, you can rest easy knowing that you will not have to go up against the IRS alone.
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 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.
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