According to a Department of Justice press release, two Las Vegas residents were recently sentenced to serve time in a federal prison for engaging in a scheme to generate millions of dollars in false refunds from the IRS. We understand that our readers do not set out to defraud the government, but this story serves as a reminder that the government does not take inaccuracies on tax returns lightly, especially intentional inaccuracies. If you find yourself out of federal or state tax compliance, it may be time to contact an experienced tax defense attorney.
Defendants Filed Phony Tax Returns, Convicted
Court documents revealed that defendants Chanh V. Trinh and Cannedy Trinh were sentenced to serve 102 months and 24 months, respectively, in a federal prison. The pair was found guilty of engaging in a conspiracy with a third individual to file federal corporate and individual tax returns that reported false income tax withholdings and payments, in order to generate false and fraudulent income tax refunds.
Prosecutors alleged that the defendants filed the fraudulent returns in the names of fictitious business entities, themselves, other individuals, and even relatives that had been deceased for decades. Chanh V. Trinh was the preparer of the returns but prosecutors alleged that all three co-conspirators deposited refund checks in bank accounts or caused refund checks to be cashed as Las Vegas-area check cashing establishments. The defendants used the cash to purchase cashiers checks, which were exchanged for chips at local Nevada casinos. All in all, prosecutors estimate that the conspiracy yielded more than $2 million in fraudulent refunds paid out by the IRS.
The IRS and DOJ Will Investigate and Prosecute Tax Crimes
Although only a small amount of the taxpayer population are as brazen as the defendants in the story detailed above, the facts of the case and the response of the IRS and the Department of Justice demonstrate the federal government’s intolerance for tax cheats. Whether an error was intentional or not, the chief goal of the IRS and state taxing authorities is to determine whether taxes were filed in accordance with the law, and if not, to punish taxpayers who are out of compliance.
If you have received a notice that your tax return has been selected for an audit, or if you are in the midst of a dispute with the IRS or state taxing authority, it is in your best interest to contact an experienced tax attorney as soon as possible. Not only can a tax defense attorney assist in the development of a sound legal argument to support your return position, they can also ensure that your interactions with the government do not result in the over-sharing of information that could be used against you in the future.
Contact an Experienced Tax Attorney Today
The tax and accounting professionals at the Tax Law Office of David W. Klasing have extensive experience representing taxpayers from all walks of life in a myriad of tax and legal situations. Whether you are a small business owner facing a sales or employment tax audit or have been notified that your personal income taxes have been selected for examination, our zealous advocates are standing by to help assist you in the development of a strategy focused on maintaining your physical and financial freedom. Do not let the threat of an IRS or state tax audit or investigation keep you up at night. Contact the Tax Law Offices of David W. Klasing today for a reduced-rate consultation.
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Questions and Answers for Criminal Tax Representation
- When tax defense counsel parallels tax crime investigation
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