According to a press release issued April 18, 2018 by the Department of Justice (DOJ), Las Vegas, Nevada-based realtor William Waller was indicted the previous day on a laundry list of tax and financial crimes, including (1) failure to file multiple tax returns, (2) willful tax evasion, (3) making false statements to a financial institution, and (4) attempting to interfere with Internal Revenue laws. Any one of these charges could have resulted in months, perhaps years of prison time – but because the accusations are numerous, Waller risks a devastating sentence of up to four decades if convicted.
Las Vegas Man Facing 40-Year Prison Sentence for Tax Crimes, False Statements
The DOJ reports that on April 17, a Nevada grand jury returned an indictment for defendant William Waller. A jury may only return an indictment, which is another term for a criminal charge, if the evidence against the defendant appears to establish probable cause to believe the defendant may have broken the law. In felony cases filed at the federal level, the defendant may choose to waive his or her right to an indictment – a strategy which typically predicts a guilty plea. Conversely, declining to waive indictment suggests that a defendant may intend to fight the charges.
The indictment makes a series of serious accusations against the defendant, alleging the following:
- From 2004 through 2009, Waller repeatedly engaged in tax evasion, failing to pay over $500,000 in taxes owed to the federal government. You may be surprised by these dates, considering the widespread misconception that the IRS has three years to assess tax. In actuality, the statute of limitations can be extended to six years – or even longer. In cases like Waller’s, where the taxpayer appears to have committed tax evasion willfully, there is no statute of limitations, effectively giving the Internal Revenue Service unlimited time. The penalties for tax evasion, set forth under 26 U.S. Code § 7201 (attempt to evade or defeat tax), include up to five years in prison and fines not exceeding $100,000.
- Despite exceeding the income threshold at which filing requirements are triggered, Waller did not file an income tax return for the tax years 2011 or 2012. If willful, the failure to file a tax return is a federal felony, for which a maximum prison sentence of five years may be imposed. These penalties are established by 26 U.S. Code § 7203 (willful failure to file return, supply information, or pay tax).
- Waller attempted to interfere with the normal administration of Internal Revenue laws, meaning the Internal Revenue Code (IRC) or U.S. Tax Code, by instructing others to direct payments to various nominee entities. He then, in the names of these nominees, spent the funds on personal expenses. Interfering with the IRC (or IRS) is criminalized by 26 U.S. Code § 7212 (attempts to interfere with administration of Internal Revenue laws), which provides a maximum prison sentence of either one or three years, depending on the circumstances, plus a maximum fine of either $3,000 or $5,000. This offense is sometimes referred to as “tax obstruction.”
- In addition to violating the Tax Code in the ways listed above, Waller also lied to a bank regarding his income, claiming to have spent multiple years unemployed in order to receive more favorable terms on a loan. Making false statements to a bank is illegal under 18 U.S.C. § 1014 (loan and credit applications generally; renewals and discounts; crop insurance).
At this early stage, it is uncertain which direction the case against Waller will take. What is certain, however, is that he will face incredibly severe penalties if found guilty. Between the maximum sentences for each offense – one year for each count of failing to file returns, three years for tax obstruction, five years for tax evasion, and a shocking 30 years for making false statements to a bank – Waller may be incarcerated for decades.
IRS Tax Evasion Defense Attorneys Can Fight to Reduce Criminal Penalties
If you have failed to file tax returns, failed to pay taxes, underreported your income, or in any way interfered with the work of IRS agents or auditors, you are at risk for finding yourself at the center of a similar criminal investigation. It is crucial to take swift and strategic action with help from an Orange County tax evasion lawyer to construct a strong platform for building your defense.
At this juncture, it may still be possible to dramatically reduce the penalties you face – but the longer you wait to seek legal counsel, the fewer options you will have. Where tax noncompliance is concerned, an early and proactive response is key. For a reduced-rate consultation with an award-winning criminal tax defense attorney who is equipped with over 20 years of experience defending taxpayers in federal court, contact the Tax Law Office of David W. Klasing online, or call our tax firm at (800) 681-1295 right away.
Also, we’ve expanded our offices! In addition to our offices in Irvine and Los Angeles, the Tax Law Offices of David W. Klasing now have offices in San Bernardino, Santa Barbara, Panorama City, and Oxnard! You can find information on all of our offices here.
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Criminal Tax Evasion: https://youtu.be/2rBasJaRz2o
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