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According to a Department of Justice press release, a Massachusetts man was arrested and charged with willfully failing to withhold, account for, and pay over employment taxes, conspiring the defraud the IRS, and aiding in the preparation of a false tax return. This story evidences the extremely negative repercussions that can result from an IRS criminal tax investigation and Department of Justice tax prosecution. If you have failed to file a business or individual income tax return for one or more years or have filed a tax return containing information that could not be supported upon examination, it is in your best interest to seek assistance from attorney and avoid criminal tax prosecution.
Court records reveal that Mauricio Baiense, of Quincy, Massachusetts, was the owner and operator of Contract Farming Buildings. Prosecutors allege that between 2013 and 2017, the defendant made efforts to convert the company’s funds into cash. Prosecutors allege that the defendant wrote checks that were drawn on the business’s bank account to “subcontractors” who were actually nominees controlled by the defendant. At least $11 million of such checks were chased.
The defendant is also accused of paying employees “under-the-table” in cash. Federal prosecutors allege that because of this scheme, the defendant did not properly withhold the proper amount of taxes or pay over the appropriate amount of withholding taxes to the IRS. Lastly, the defendant is accused of making false statements to the federal authorities.
If the defendant is convicted, he could be sentenced to serve up to five years in federal prison for each of the seven counts related to the failure to comply with employment tax laws, five years for conspiring to defraud the IRS, and three years for aiding and assisting in the filing of a false tax return. The defendant may also be sentenced to serve a period of supervised release, to commence upon the completion of any physical incarceration. Lastly, the defendant may be ordered to pay restitution, representing the tax loss suffered by the IRS.
If the allegations of the Department of Justice are true, the defendant in the above story was likely under the impression that they are just a small fish in a big pond and that avoiding detection would be easy. Unfortunately for those who have violated tax laws, the IRS is increasing its enforcement headcount and adding to its digital capabilities aimed at detecting tax fraud.
If you have failed to file a business or individual income tax return for one or more years, or you have filed an inaccurate tax return, you should consult with an experienced tax defense attorney to determine the best strategy to get right with the government. Together, you will work with your seasoned tax attorney to establish the pertinent facts of your case. Then, you will mutually agree on the next steps to bring you into tax compliance while attempting to minimize civil and criminal repercussions.
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.
In addition to our main office in Irvine, the Tax Law Offices of David W. Klasing has unstaffed (conference room only) satellite offices inLos Angeles, San Bernardino, Santa Barbara, Panorama City, Oxnard, San Diego, Bakersfield, San Jose, San Francisco, Oakland, CarlsbadandSacramento.
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If you are concerned about the possibility of an IRS audit or criminal tax investigation into you or your business and past filings, it is important to assess all possible options to avoid such a situation.
The federal government’s voluntary disclosure programs provide an avenue for taxpayers who are aware of noncompliance in their filing history to come forward with additional information without being coerced into doing so through audit or criminal tax investigation. By using the voluntary disclosure option, many taxpayers avoid can avoid or reduce the penalties and fines that they might otherwise face if the government had to seek out the violations themselves.
However, voluntary disclosure may not be right in every situation. Firstly, if a criminal investigation is already underway, your decision to voluntary disclose will likely have no effect on the consequences and may even end up doing more harm than good. It is always important to discuss your situation with a seasoned Dual Licensed Criminal Tax Defense Lawyer and CPA, even if you made a genuine and honest mistake.
If you are afraid that you may have fallen out of tax compliance and are concerned about what constitutes tax fraud or tax evasion, our dual licensed Tax Attorneys and CPAs can provide you with an overview of your case and prepare your defense. Call the Tax Law Offices of David W. Klasing at (800) 681-1295 or click here to schedule a reduced rate initial consultation online.
If you are dealing with serious tax matters, you deserve tax assistance that you can rely on. Schedule your first reduced-rate case evaluation with our Criminal Tax Defense Lawyers by calling (800) 681-1295 today or schedule online here.
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.
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.