According to a Department of Justice press release, a Las Vegas man was recently indicted by a federal grand jury for intentionally conspiring with others to file false tax returns for multiple automotive repair businesses. This indictment is an example of the serious nature of breaking federal tax laws. If you have failed to file a tax return for one or more years, have overstated deductions, or understated income, it is in your best interest to contact an experienced tax defense attorney to discuss your options to come into tax compliance.
Court records reveal that Lance K. Bradford was responsible for filing tax returns for several auto repair businesses in the Las Vegas area. IRS investigators and Department of Justice prosecutors allege that between 2013 and 2015, Bradford conspired with others to prepare and file 29 false tax returns. On those tax returns, Bradford claimed substantial false deductions related to millions of dollars of expenses never incurred by the automotive repair businesses.
If Bradford is convicted, he could face up to 20 years in prison for the single count of conspiracy. Additionally, Bradford could be sentenced to serve up to three years for each of the 29 counts of aiding in the filing a false tax return. Finally, Bradford faces financial penalties such as the payment of restitution to the IRS representing the tax loss that his criminal activity resulted in.
Unfortunately, tax preparers that are willing to cheat for their clients are in high demand and often will have new clients lined up around the block that desire to pay less taxes. It is important to realize that it is not just the tax preparer that has exposure for tax fraud. Is saving money on your federal and state tax bill worth risking a jail sentence and the associated life altering consequences of criminal tax conviction?
One of the most common issues that arise in business tax audits are the overstatement of deductible business expenses. Although the tax code is very liberal in the ability to deduct expenses that are ordinary and necessary to the operation of the business, certain limitations exist and must be adhered to. In some situations, taxpayers will simply make up business-related expenses to illegally lower their overall tax liability. If the IRS determines that such fictitious deductions were taken intentionally, criminal charges like those in the story above could result.
If you have claimed deductions on your personal or business tax return or have failed to report certain amounts of income, or claimed credits you were not entitled too, it is in your best interest to contact an experienced tax defense lawyer to discuss your options to get right with the government. The assistance of an experienced tax advocate and strategist before a tax issue is audited or during a tax audit can mean the difference between walking away relatively unscathed and criminal tax charges. If you are willing to knock on the governments door and be willing to fix your prior criminal noncompliance it is nearly guaranteed that you can come back into compliance without a risk of criminal prosecution through an offshore or domestic voluntary disclosure with the help of reputable counsel like that provided by the dual licensed Tax Attorneys and CPAs at Tax Law Offices of David W. Klasing.
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. During the COVID-19 pandemic, our staff are working from home, but have full virtual meeting capability.
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