Federal and state taxes are the source of most revenue used to fund government programs. From highway maintenance to Social Security payments to the retired, taxes play a vital role in keeping our country and states operating. It should come as no surprise that when tax authorities discover that a taxpayer hasn’t been playing by the rules, little mercy is shown. Last week, a Massachusetts chiropractor found out exactly how seriously the U.S. Department of Justice takes tax crimes.
According to a Department of Justice press release, Richard Rogers, a Massachusetts chiropractor, was indicted for tax evasion by a federal grand jury, last week. Rogers, who owned and operated a chiropractic clinic out of his home, is accused of evading income taxes from tax years 2012 through 2016. Furthermore, the government alleges that Rogers’ tax evading activity began as early as 2008, as he had not filed a tax return since 2007.
Prosecutors allege that Rogers evaded federal income tax through a variety of methods including concealing his income through the use of nominee bank accounts, paying various bills using money orders, and using credit cards that were opened with fake social security numbers. Finally, Rogers concealed ownership in his home by placing the deed in the name of a trust, which he controlled.
Rogers’ trial will begin later this year. If convicted of tax evasion, he will face up to five years in prison for each count. Additionally, Rogers may be required to pay criminal fines, penalties, and restitution for the taxes that went uncollected. Finally, Rogers may be sentenced to serve a term of supervised release after his time in federal prison comes to an end.
The IRS and state taxing authorities frequently target small and medium-sized businesses. In addition to small businesses being less technically sophisticated (in their bookkeeping, tax planning, and tax compliance), they also have higher instances of wrongdoing by their owners than do large businesses. There are a host of issues that taxing authorities look for when investigating small and medium-sized businesses including true reporting of revenue, proper deductions related to business expenses, and the withholding and remittance of employment-related taxes.
Small and medium-sized business owners that have received a notice of audit should consult with an experienced tax defense attorney. A tax lawyer that has handled a considerable amount of individual and business tax audits will help ensure information in the form of statements or documents that may be used against a taxpayer later are not voluntarily shared with the government unless required by law. Additionally, a tax defense lawyer will help establish practices for the future that both consider taxpayers’ individual needs and comply with state and federal tax laws.
The tax and accounting professionals at the Tax Law Offices of David W. Klasing have extensive experience representing taxpayers from all walks of life. Whether you are a small to medium-sized business owner in need of tax planning advice or an individual facing a state or federal tax audit, our team of zealous advocates is ready to help you formulate an effective tax strategy. Don’t let the IRS or state taxing authority keep you up at night. Contact the Tax Law Offices of David W. Klasing today for a reduced-rate consultation.
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