According to a Department of Justice press release, a Las Vegas real estate professional pleaded guilty to tax evasion after being charged with a plethora of tax crimes related to his attempt to thwart IRS collection efforts. If you have failed to file a business or individual income tax return for one or more years, or you have filed inaccurate tax returns, you should consult with an experienced tax defense attorney to determine the best strategy to get right with the government.
Defendant Faces Up to Five Years in Federal Prison After Guilty Plea
If you recall from our previous reporting of this story, Scott and Debra Lawrence, a couple from Las Vegas, Nevada were engaged in the real estate and interior design businesses, respectively. Prosecutors alleged that between 2005 and 2020, the defendants filed tax returns that did not properly reflect their true income. After an IRS audit and the determination that the couple owed far more taxes than they had paid when filing their tax returns, Department of Justice attorneys argued that the couple engaged in various evasive tactics to avoid paying their tax bill. Such tactics included cashing large portions of their paychecks, thereby avoiding the effect of IRS levies and other collection methods. Additionally, the Lawrences’ were accused of failing to pay their 2014 through 2018 federal tax bill, altogether.
A federal grand jury indicted Scott and Debra Lawrence on counts related to conspiring to defraud the United States, tax evasion, filing a false tax return, assisting in the filing of a false tax return, and failing to file tax returns and pay federal income taxes. Scott Lawrence pleaded guilty to one count of tax evasion.
A date for sentencing has not yet been set. Scott Lawrence faces up to five years in federal prison. Additionally, Lawrence may be ordered to serve a period of supervised release, to commence upon the completion of any term of physical imprisonment. Finally, the defendant will likely be ordered to pay restitution, representing the total amount of tax loss caused.
Coming Back into Compliance After Falling Behind
The defendant in the above case has likely come to realize that whatever gain he was hoping to achieve by evading the payment of his taxes will be far outweighed by his looming federal prison sentence. For many taxpayers, expectations that tax evasion is undetectable will win out over the reality of increased IRS enforcement activity.
If you have failed to file a business or individual income tax return for one or more years, or you have filed a false tax return containing understated income or overstated deductions, it is in your best interest to consult with an experienced tax defense attorney. Together, you will work with your seasoned tax attorney to establish the pertinent facts of your case. Then, you will mutually agree on the next steps to bring you into tax compliance while attempting to minimize civil and criminal repercussions commonly observed in serious tax disputes. While you are being represented by a tax attorney, you will not need to worry about going up against the IRS or Department of Justice alone.
We Are Here for You
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.
Our office technology allows clients to meet virtually via GoToMeeting. With end-to-end encryption, strong passwords, and top-rated reliability, no one is messing with your meeting. To schedule a reduced rate initial consultation via GoToMeeting follow this link. Call our office and request a GoToMeeting if you are an existing client.
You Can Prevent an IRS Criminal Prosecution Through Voluntary Disclosure
If you are concerned about the possibility of an IRS audit or criminal tax investigation into you or your business and past filings, it is important to assess all possible options to avoid such a situation.
The federal government’s voluntary disclosure programs provide an avenue for taxpayers who are aware of noncompliance in their filing history to come forward with additional information without being coerced into doing so through audit or criminal tax investigation. By using the voluntary disclosure option, many taxpayers avoid can avoid or reduce the penalties and fines that they might otherwise face if the government had to seek out the violations themselves.
However, voluntary disclosure may not be right in every situation. Firstly, if a criminal investigation is already underway, your decision to voluntary disclose will likely have no effect on the consequences and may even end up doing more harm than good. It is always important to discuss your situation with a seasoned Dual Licensed Criminal Tax Defense Lawyer and CPA, even if you made a genuine and honest mistake.
The Tax Law Offices of David W. Klasing Are Here for You
If you are afraid that you may have fallen out of tax compliance and are concerned about what constitutes tax fraud or tax evasion, our dual licensed Tax Attorneys and CPAs can provide you with an overview of your case and prepare your defense. Call the Tax Law Offices of David W. Klasing at (800) 681-1295 or click here to schedule a reduced rate initial consultation online.
Concerned About Criminal Tax Charges? Call the Tax Law Offices of David W. Klasing
If you are dealing with serious tax matters, you deserve tax assistance that you can rely on. Schedule your first reduced-rate case evaluation with our Criminal Tax Defense Lawyers by calling (800) 681-1295 today or schedule online here.
If you have failed to file a tax return for one or more years or have taken a position on a tax return that could not be supported upon an IRS or state tax authority audit, eggshell audit, reverse eggshell audit, or criminal tax investigation, it is in your best interest to contact an experienced tax defense attorney to determine your best route back into federal or state tax compliance without facing criminal prosecution.
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.
More Commonly Asked Tax Audit Questions
- How should Tax Audits be Handled by Criminal Tax Counsel?
- How to survive audit when I cheated on return being audited
- What is an eggshell audit?
- What is a reverse egg shell audit?
- Why is a reverse egg shell audit dangerous for a taxpayer?
- Warning signs of a criminal referral from an IRS audit
- Effective tax defense counsels goals in an egg shell audit?
- How are the 4 goals and outcomes 1 and 2 best obtained?
- What are the possible outcomes of an egg shell audit?
- Is it my right to know why I was selected for examination?
- What can I do to prepare for an audit?
- What is an IRS civil examination?
- How IRS decides which tax returns are audited
- What are my appeal options if I disagree with IRS?
- What are my basic taxpayer rights if the IRS audits me?
- Options if I am unable to pay at the conclusion of audit
- What a 30 or 90-Day Letter from the IRS means
- What is involved with appealing disagreements?
- Rights to disagree with IRS tax auditor’s findings
- Can I stop the IRS from repeatedly auditing me?
- Can I have the examination transferred to another area?
- Can I record my IRS interview and is it a good idea?
- How many years of returns are at risk during an audit?
- Common reasons for the IRS to conduct a tax audit
- How to avoid negative consequences from an IRS interview
- Have to agree to interview by taxing authority directly?
- Are all audits the same?
- What should I do if the IRS is investigating me?
- What if I don’t respond to a taxing authority audit notice
- Your rights during an IRS tax audit
- Risks of attending an IRS audit without a tax lawyer
- Most common audit technique used by taxing authorities
- Don’t go into an IRS audit without representation
- Why hire an attorney to represent me in an audit?
- Why hire David W. Klasing to represent me in an audit
