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Maryland Man Charged With Tax Crimes After Lying About His Tax Status

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Maryland Man Charged With Tax Crimes After Lying About His Tax Status


According to a Department of Justice press release, a Maryland security guard was recently charged with tax evasion after failing to file tax returns for multiple years and falsely claiming that he was exempt from federal income tax. This story should serve as a reminder to taxpayers who believe that the IRS and Department of Justice only go after high-profile taxpayers, that the tax laws apply to everyone and the repercussions of willfully violating them can result in serious civil and criminal tax penalties. If you have failed to file a tax return for one or more years, or have filed a tax return that contains information that was knowingly false, it is in your best interest to consult an experienced tax defense attorney to determine the best strategy to come into compliance.

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 Instructed His Employer to Not Withhold Federal Taxes

Court documents reveal that Gaston Gilberto Reyes of Germantown, Maryland, worked as a security guard between 2015 and 2020. Prosecutors allege that during that time, he did not file a federal income tax return. Further, an IRS investigation uncovered that Reyes allegedly told his employers that he was exempt from federal income tax. This assertion resulted in his employers withholding very little or no federal income tax from his paychecks. The IRS estimates that Reyes failed to report more than $1,000,000 in wages over the six-year period.

If the defendant is convicted, he faces up to five years in prison for each count of tax evasion. Additionally, he may be ordered to serve the period of supervised release to commence upon the completion of any physical incarceration. Finally, the defendant faces monetary penalties such as restitution to the IRS representing the amount of tax loss caused.

Working With a Tax Attorney After Falling Out of Tax Compliance

This story should help bust a common misconception among taxpayers that the Department of Justice only brings criminal charges against the ultra-wealthy or celebrities. The defendant in this case is a security guard, not a movie star or wealthy investor. Indeed, the hammer of justice falls equally among those who are accused of willfully violating federal income tax laws.

Luckily for many taxpayers, the IRS has multiple programs that allow those who have failed to file tax returns or have fallen behind on tax payments to catch up without some of the significant and sometimes life-altering repercussions of a federal income tax investigation or criminal prosecution. If you have failed to file a tax return for one or more years, or have knowingly filed a false tax return, a seasoned tax attorney will serve as a valuable resource in determining the next steps to get right with the government. Together, you will establish the pertinent facts of your case. Then, you will jointly decide on the appropriate path forward.

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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.

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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