According to a Department of Justice press release, a Maryland business owner was recently sentenced to serve 13 months in federal prison after being convicted of tax crimes. This story highlights the potentially life-altering repercussions that you may face if you intentionally violate federal income tax laws. If you have failed to file a tax return for one or more years or have taken a position on a tax return that you could not support if audited by the IRS, it is in your best interest to contact an experienced tax defense attorney to discuss your options to come into tax compliance without facing criminal tax prosecution.
This story serves as an update to a blog post that we brought you earlier this year. As you may recall, Jerry Lee Redman, a resident of Severn, Maryland and owner of Redman Services Inc., a paving and construction firm, admitted to purposefully evading his federal income taxes. Prosecutors alleged that from 2015 to 2018, Redman misrepresented RSI's gross earnings in the company's tax filings. He redirected clients to issue checks in his name instead of RSI's, which he then deposited into his personal account. Such transactions went unrecorded in RSI's corporate returns. Additionally, Redman omitted other income sources from RSI and manipulated funds from the company's account for personal use, neither of which he declared in his personal tax returns. He further distorted some of these personal expenditures as corporate expenses in RSI’s filings. Due to his willful actions, the IRS incurred a loss of approximately $666,113.
In addition to being sentenced to serve 13 months in federal prison, Redman was also ordered to serve one year of supervised release. Finally, the defendant was ordered to pay nearly $900,000 in restitution to the United States, representing the amount of tax loss that resulted from the defendant’s criminal activity.
The story above illustrates the serious consequences of a criminal tax investigation and prosecution. The defendant’s life will likely be forever affected by the consequences of a criminal tax conviction. But it doesn’t have to end that way. With the assistance of an experienced tax defense attorney, you can attempt to mitigate many of the worst negative repercussions that are inherent with a criminal tax investigation & prosecution.
If you have failed to file a tax return for one or more years or have filed income tax returns that are false, it is in your best interest to contact an experienced tax defense attorney. Together, you will work to establish the pertinent facts of your case. Then, you will jointly decide on a strategy to bring you into tax compliance. Generally, taxpayers experience more favorable outcomes if they proactively attempt to rectify their past tax noncompliance as opposed to those who wait to be audited and investigated.
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 disclosure before 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!
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.
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