According to a Department of Justice press release, a Las Vegas real estate broker was recently convicted of failing to file tax returns or pay tax for over 20 years. This story highlights the predicament of many taxpayers throughout the United States. When a taxpayer gets behind on tax payments, it is often difficult to catch up. Though, the prison sentence that the defendant in this case will likely serve is a reminder that if you make the IRS and Department of Justice come after you, they will do so with the full force of the law. Contacting an experienced tax defense attorney will allow you to develop a strategy to try to mitigate some of the negative repercussions that the defendant in the case has and will encounter, most importantly, the risk of criminal tax prosecution.
Defendant Failed to File Tax Returns for 20 Years, Convicted of Felonies
Prosecutors alleged that William Walter Jr. earned substantial income over the past 20 years but failed to file a tax return or pay taxes during that time. A real estate broker, Walter earned over $500,000 for the years 2004 through 2009. The IRS realized the he had not filed a federal income tax return on that income and initiated collection procedures. In order to avoid the collection of the tax he owed during that time, Walter structured his finances to utilize his business bank accounts for personal expenses. Additionally, Walter used loans to borrow against property that he owned, drawing down his equity in the property for the purposes of evading the collection of tax.
Prosecutors presented evidence that showed that Walter’s last income tax return had been filed in 1998, showing zero income. Walter faces up to five years in prison for the tax evasion count and one year in a federal prison for each count of failing to file a tax return. Additionally, Walter will likely be required to serve a term of supervised release after his time in prison, and likely will be required to pay restitution to the IRS for the taxes that he owes. Walter will be sentenced on June 21st.
Getting Caught Up on Back Taxes
Many taxpayers that have failed to file tax returns for one or two years then fall into a spiral of noncompliance that can involve not filing tax returns for decades or more. The thought among taxpayers is often “if I file a tax return this year, the IRS will find out that I did not file a tax return last year”. The non-filing continues until the taxpayer is finally caught by the IRS or state taxing authority, and by that time, enough back taxes, interest, and penalties have likely piled up that the taxpayer will likely have a difficult time getting out of the hole they have dug.
Luckily, there is help out there. An experienced and dually qualitied tax defense attorney and CPA is perfectly suited to assist a taxpayer in getting back into compliance and keeping their scalp intact in the process. A tax defense attorney is like a doctor for tax compliance and has a bag full of tools that can help make getting right with the government less painful than if the government were to make the discovery and force you into submission. It is ALWAYS better to approach the government about your non compliance than to have them reach out to you about it.
The Benefit of utilizing a dually licenses Tax Attorney & CPA
An experienced tax attorney has both the technical tax knowledge to develop a strategy based firmly in tax law to rectify the situation and extensive legal training that can be used navigate the complex processes that the IRS and state taxing authorities have established. In addition, an experienced tax defense attorney will be present at your meetings with the government, should there be any, to ensure that the government does not solicit criminal admissions to questions that may be used against you in the future.
An experienced CPA will make sure that the accounting for your business withstands scrutiny. The last thing you want to do when re-entering the system is to get caught cheating on the way back in. There is no debtors prison in this country but the very act of non-filing when you have a filing requirement is already a completed crime. The odds of an audit being opened after you reenter the system are greatly elevated. Our firm has never had a client that we have helped to renter the system after being a non-filer criminally prosecuted. While this is not a guarantee, we feel very strongly about our ability to successfully navigate any part of the process which invariably involves assessment, and occasionally involves audit or investigation, any necessary appeal to the collections process.
Contact an Experienced Tax Attorney Today
The tax and accounting professionals at the Tax Law Offices of David W. Klasing have extensive experience in representing taxpayers that have fallen out of compliance with federal or state tax laws. From individuals to businesses, our team of zealous advocates is standing by to help develop a plan will aim to help mitigate the potentially devastating impacts of being caught up in a IRS or state tax examination or criminal investigation. Do not let the threat of a criminal investigation or jail time 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 on Unfiled Back Taxes
- What are the common issues that non-filers face?
- Risk of audit after filing delinquent prior year returns
- Can substitute return deficiency be discharge in bankruptcy
- Substitute return modified by subsequent delinquent return?
- Do I file every delinquent return for each missing year?
- How does the IRS identify non-filers?
- How important is it to the government that I didn’t file?
- Delinquent tax return criminal prosecution likelihood
- Will I get a refund on a delinquent tax year?
- What happens after enforcement action has begun?
- Should I use an attorney, EA or a CPA to represent me when I re-enter the tax system?
- Why do people drop out of the tax system?
- What happens after the IRS identifies me as a non-filer?
- IRS has not previously filed substitute returns
- Tax attorney representation when re-entering tax system
- How will the government force me to file returns?
- What penalties can IRS impose on delinquent tax filings?
- What should I do to re-enter the tax system?
- Can Law Office of David W. Klasing help me re-enter system?
- Will tax collection taken by authorities affect my credit
- I concealed bank accounts from the government
- Forgetting or failing to file tax return
Questions and Answers on Offer in Compromise
- Do I need to provide financials if the IRS requests them?
- How does the IRS calculate my income?
- David W. Klasing Offer in Compromise help
- How long does it take to get an Offer in Compromise?
- What exactly is an Offer in Compromise?
- How exactly do I apply for an Offer in Compromise?
- How to protect my Offer in Compromise from being revoked
- Prerequisites to obtaining an Offer in Compromise
- Form 433-A (OIC) Collection Information Statement with OIC
- When will the IRS entertain an Offer in Compromise?
- What are the ways Offers in Compromise can be paid
- Objectives of the IRS Offer in Compromise Program
- Will Offer in Compromise affect criminal tax liability?
- Offer in Compromise includes liabilities prior to marriage
- What payments are required with an Offer in Compromise
- Will an Offer in Compromise affect installment agreement
- Offer in Compromise effect on statute of limitations
- Filing Offer in Compromise affect collection actions?
- How will I know if my Offer in Compromise is accepted?
- What happens when IRS finds something wrong with my offer
- Why was my offer found to be unacceptable?
- Is an accepted Offer in Compromise public record?
- What legal effects does entering into an Offer in Compromise have on a taxpayer?
Questions and Answers on Tax Liens, Levys and Tax Garnishments
- Frivolous Collection Due Process Hearing Requests
- IRS Collection Notices
- 2016 Changes to IRS Collections
- What are some events that can suspend or extend the collection statute allowing the IRS more time to collect on an outstanding tax debt?
- How long can the IRS collect on a past due debt?
- What happens when the collection statute expires?
- How much time does the CA Franchise Tax Board have to collect on an outstanding tax debt?
- Spouses tax liability at life and death
- When should I file a Collection Appeal Protest (CAP)?
- Differences between a CDP Form 12153 and Form 9423
- What Do You Do If You Owe Money to the IRS and You Cannot Pay the Balance Due Right Away?
- Do You have Unfiled Personal Income California Tax Returns?
- What do you do if you owe sales tax to the CA Board of Equalization?
- My employer received Form 668-W, Notice of Wage Garnishment
- Can the IRS levy my Social Security benefits?
- How to release the wage levy?
- What is a federal tax lien?
- What is the effect of a federal tax lien?
- Can a taxpayer challenge the filing of a federal tax lien?
- How do I get a tax lien removed or released?
- What do I do if the IRS issues a bank levy?
- How to Release a Bank Levy?
- What if I am an employer and the levy attached to payroll?
- What additional information does the IRS need from me?
- What is a Collection Due Process (CDP) Hearing?
- What is an Equivalency Hearing?
- I received a notice from the IRS, what do I do?
- I moved and never received notices from the IRS
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Will it cost me more to hire the Tax Law Offices of David W. Klasing, who’s main office and the vast majority of the firm’s staff is located in Irvine California, but an appointment only Satellite office is close to my location, as opposed to a local company? Absolutely not! See our policies that address this issue here:
