According to a Department of Justice press release, a Louisiana business owner recently pleaded guilty to filing false tax returns. The defendant’s actions were made in an attempt to reduce his tax bill, an end goal that most Americans can agree with. Knowing the differences between legally and illegally lowering your tax bill is crucial. If you are unsure as to the tax treatment of a particular item of income, transaction, or expense, or are being targeted by the IRS or state taxing authority for a position on a prior year tax return, it is in your best interest to contact an experienced tax defense attorney.
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Court documents revealed that Robert Poimboeuf, 57, of Shreveport, partially owned and operated D&G Holdings, LLC. D&G was a laboratory company that specialized in the medical field. Prosecutors alleged that between 2011 and 2015, Poimboeuf caused false federal tax returns to be filed relating to gross receipts that he earned from the business. Although he did not file the tax returns himself, Poimboeuf provided knowingly false information to his tax preparers and even took steps to conceal income from them by intentionally concealing the existence of several bank accounts. Additionally, the defendant attempted to disguise business receipts that he received as non-taxable loans. The government argues that Poimboeuf’s illegal activity resulted in a tax loss of nearly $2 million to the IRS.
Poimboeuf’s sentencing is scheduled for April of 2020. He faces a statutory maximum of six years in federal prison. He will also likely be sentenced to serve a period of supervised release after his physical incarceration is complete. Lastly, he will likely be ordered to pay restitution representing the amount of the tax loss to the government.
Every taxpayer would like to pay less taxes. But, as renowned 2nd Circuit Court of Appeals Judge Learned Hand once opined: “any one may so arrange his affairs that his taxes shall be as low as possible; he is not bound to choose that pattern which will best pay the Treasury; there is not even a patriotic duty to increase one’s taxes.” But there are limits to arranging your affairs to decrease tax.
As the defendant in the story above found out, you may not resort to illegal tactics, such as under-reporting income, to lower your tax bill. Nonetheless, there are still various strategies that a taxpayer may employ to lower his, her, or a businesses tax bill. An experienced tax attorney is especially poised to help taxpayers identify areas of potential savings and other strategies that could drive down your current or future tax bill. Additionally, an experienced tax defense attorney will be able to assist in the event that the IRS or state taxing authority takes issue with any particular area of your federal or state tax return.
The tax and accounting professionals at the Tax Law Offices of David W. Klasing have worked with individuals and business owners of companies ranging in size from mom and pop to middle market. If you have received notice from the IRS or state taxing authorities that your individual or business tax returns are being scrutinized, our team of zealous advocates will help you develop a legal strategy aimed at preserving the integrity of you and your business. Do not let the threat of a criminal investigation or criminal tax prosecution keep you up at night. Contact the Tax Law Offices of David W. Klasing today for a reduced-rate consultation.
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In addition to our staffed main offices 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.
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