Call Now (800) 681-1295
Close

Massachusetts Chiropractor Sentenced to Prison for Tax Evasion

Table of Contents

    Chiropractors are typically the ones who perform a back or neck adjustment. But a Massachusetts chiropractor will be experiencing an adjustment of his own as he will be transitioning into becoming a resident at a federal prison after he was recently sentenced for tax evasion.

    See our Criminal Tax Law Q and A Library

     

    Clients Were Encouraged to Pay in Cash to Further Tax Evasion

    According to a Department of Justice press release, Richard Rogers, owned and operated a chiropractic clinic out of his home in Northborough, Massachusetts. Prosecutors alleged that between 2012 and 2016, Rogers was able to evade taxes by taking various steps to conceal his income from the IRS.

    Before pleading guilty to a single charge of tax evasion earlier this year, prosecutors alleged that Rogers encouraged that his clients pay for his services in cash (as to not create a transactional record). When some clients refused to pay in cash and paid by check instead, Rogers used a nominee bank account to cash the checks. Rogers was alleged to have paid his bills using money orders and credit cards, which were opened with a fake social security number. Finally, likely anticipating that the IRS would eventually come after his assets, Rogers intentionally concealed the ownership of his home by transferring it to a trust. Although he was obligated to do so, Rogers failed to file a federal income tax return for tax years 2008 through 2016.

    At his sentencing hearing, Rogers was ordered to spend six months in a federal prison. Additionally, U.S. District Judge Timothy Hillman ordered Rogers to pay over $155,000 to the IRS in the form of restitution.

     

    Cash Intensive Businesses Beware

    The IRS and state taxing authorities are keenly aware that taxpayers who are primarily paid in cash are highly susceptible to accounting and bookkeeping mistakes, at best, or intentional understatements, at worst. Although a large majority of cash-based businesses make an attempt to follow the tax law by maintaining accurate books and records, a fair amount does not. Some cash intensive businesses see very little wrong with only reporting a fraction of their cash-based sales.

    The activity described above is called skimming. Some cash-based businesses do it manually and some with a bit of technological prowess do it automatically. Automated skimming software will take a percentage of cash-based sales off of the books and records that are kept for tax purposes. When the IRS or state taxing authority asks for accounting proof that supports their tax returns, there are falsified documents at the ready.

    States and the IRS have caught on to the art of skimming, whether it is automated or manual. Tax investigators have been known to place undercover agents near a business’s point of sale system to observe cash that come in on a daily basis. This helps investigators determine whether there are any irregularities in the substantiation provided by the taxpayer upon request.

    If you are a business owner who has engaged in skimming or believe that your tax return has not reflected the true income earned, it is in your best interest to consult with a tax defense attorney. There is typically a benefit to coming forward and remedying the situation with the IRS before they come looking for you.

    See our Audit Representation Q and A Library

     

    Contact an Experienced Tax Attorney Today

    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 business owner facing a sales and use tax audit or you have received notice that your individual return is being examined, our team of zealous advocates are standing by to help you develop a sound legal strategy that will keep your personal and financial interests at the forefront of importance. Do not lose sleep over the possibility of tax evasion or other tax-related charges from the IRS or state taxing authorities. Contact the Tax Law Offices of David W. Klasing today for a reduced-rate consultation.

    See our Sales Tax Q and A library

    Also, we’ve expanded our offices! In addition to our offices in Irvine and Los Angeles, the Tax Law Offices of David W. Klasing now have offices San Bernardino, Santa Barbara, Panorama City, Oxnard, San Diego, Bakersfield, San Jose, San Francisco, Oakland, and Sacramento.

     

    Note: If you have concerns about the privacy of our initial or subsequent communication and are unable to easily travel to our Irvine / Orange County Main Office, consider scheduling a GoToMeeting to safely and securely establish an initial or maintain an existing attorney client relationship.  With end-to-end encryption, strong passwords and top-rated reliability, no one is messing with your meeting. To schedule a reduced rate initial consultation via GoToMeeting follow this link.   Call our office and request a GoToMeeting if you are an existing client. We are generally happy to travel to any of our appointment only satellite offices for a subsequent meeting in appropriate circumstances once a relationship is established via a signed engagement letter and the payment of an initial retainer or where enough retainer is available where a current client to cover the reasonable travel time and time required for the meeting.

    Will it cost me more to hire the Tax Law Offices of David W. Klasing, who’s main office and the vast majority of the firm’s staff is located in Irvine California, but an appointment only Satellite office is close to my location, as opposed to a local company?  Absolutely not!  See our policies that address this issue here:

    Tax Help Videos

    Representing Clients from U.S. and International Locations Regarding Federal and California Tax Issues

    tax lawyers

    Main Office

    Orange County
    2601 Main St. Penthouse Suite
    Irvine, CA 92614
    (949) 681-3502

    Our headquarters is located in Irvine, CA. Our beautiful 19,700 office space is staffed full-time and always available for our clients to meet with our highly qualified and experienced staff of Attorneys, Certified Public Accountants and Enrolled Agents. We also offer virtual consultations and can travel to meet with clients in one of our satellite offices.

    Outside of our 4 hour initial consultation option, we do not charge travel time or travel expenses when traveling to one of our Satellite offices, or surrounding business districts, where it is necessary to meet personally with taxing authority personnel, make court appearances, or any in person meeting deemed necessary for the effective representation of a client. To make this as flexible, efficient, and convenient as possible, David W. Klasing is an Instrument Rated Private Pilot and Utilizes the Firms Cirrus SR22 to service client’s in California and in the Southwest by air. Offices outside these areas are serviced via commercial jet airlines. None of these costs are charged to our clients.

    Satellite Offices

    California
    (310) 492-5583
    (760) 338-7035
    (916) 290-6625
    (415) 287-6568
    (909) 991-7557
    (619) 780-2538
    (661) 432-1480
    (818) 935-6098
    (805) 200-4053
    (510) 764-1020
    (408) 643-0573
    (760) 338-7035
    Arizona
    (602) 975-0296
    New Mexico
    (505) 206-5308
    New York
    (332) 224-8515
    Texas
    (512) 828-6646
    Washington, DC
    (202) 918-9329
    Nevada
    (702) 997-6465
    Florida
    (786) 999-8406
    Utah
    (385) 501-5934