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Louisiana Man Pleads Guilty After Conspiring to Defraud the IRS

 

According to a Department of Justice press release, a Louisiana man recently pleaded guilty to conspiring to defraud the IRS after he and co-conspirators directed his compensation through a nominee entity in an effort to escape employment tax withholding and to aid in his attempt to underreport earned income. This story should remind taxpayers who are tempted to or have underreported income or otherwise structure their compensation in a way to avoid the application of tax laws that the IRS and Department of Justice will not hesitate to audit or investigate and pursue criminal tax charges, if deemed necessary. If you have failed to file a tax return for one or more years, or have taken an unsupportable position on a filed tax return, it is in your best interest to contact an experienced tax defense attorney as soon as possible to discuss your options to come into tax compliance without facing criminal tax prosecution.

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.

Note: 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.

As uniquely qualified and extensively experienced Criminal Tax Defense Tax Attorneys, KovelCPAs and EAs, our firm provides a one stop shop to efficiently achieve the optimal and predictable results that simultaneously protect your liberty and your net worth. See our Testimonials to see what our clients have to say about us!

Defendant Caused His Paycheck to be Paid Through Nominee Entity

Court documents reveal that Randall Lackey, a resident of Jefferson Parish, Louisiana, worked with co-conspirators to route his wages through a nominee entity. Lackey, an employee of SES Construction Consulting Group and Global Technical Solutions, with the help of others, caused his wages to be paid to R&O Renovations and Reconstructions, a company that he controlled. The practical effect of routing the wages in such a way was the avoidance of employment taxes being withheld from his paycheck. In addition to the alleged illegal activity described above, prosecutors allege that Lackey and co-conspirators hired workers who lacked authorization to work in the United States.

Lackey will not be sentenced until next March. He faces up to five years in prison. Additionally, Lackey may be ordered to serve up to three years of supervised release upon the completion of his physical incarceration. Lastly, Lackey may be ordered to pay restitution to the IRS, representing the amount of tax loss that he caused.

Understanding the Difference Between Tax Planning and Tax Fraud

There is nothing illegal about lawful tax structuring. Though, when taxpayers attempt to get creative in their tax planning without consulting with or without a tax attorney / CPA, areas of criminal and civil exposure often develop. U.S. courts have said that while there is no legal obligation to pay the most amount of tax possible, there is generally not a defense to willfully disregarding tax laws.

If you have failed to file a tax return for one or more years, or if you have filed a tax return that contains knowingly false information that could not be supported upon the scrutiny of an audit, it is in your best interest to discuss your facts and circumstances with a seasoned tax attorney. Together, you will determine the best route to get you right with the government. While you are being represented by a seasoned tax lawyer, you won’t have to face the IRS or Department of Justice alone.

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