According to a Department of Justice press release, a former golf professional was recently found guilty of tax conspiracy and making false statements to a financial institution after a federal jury trial. This story highlights the serious consequences that a federal tax prosecution can bring. If you have failed to file a tax return for one or more years or have filed a tax return that understates taxable income, it is in your best interest to contact an experienced tax defense attorney as soon as possible to get you right with the government without facing criminal tax prosecution.
The Defendant Was Accused of Using Stolen Funds to Fund a Lavish Lifestyle
This story is an update to a blog post that we brought you in early 2020. As you may recall, Kevin M. Kennedy, a resident of Massachusetts, was the owner and operator of Kennedy Golf Management Inc (“KGM Inc.”). KGM Inc. was under contract to manage the two public golf courses owned by the City of Springfield in Massachusetts. As a part of its contracted duties, KGM Inc. was to take care of the green fees, as well as the fees related to the rental of the city-owned golf carts.
Federal investigators discovered that Kennedy had embezzled funds from both golf courses, by stealing directly out of the cash registers at the facilities. Prosecutors allege that Kennedy physically skimmed both green fees and golf cart rental proceeds for the 7-year period between 2010 and 2016. Kennedy allegedly spent the illegally acquired funds for lavish personal expenses, such as the construction of private homes around Massachusetts. According to an IRS criminal investigation, Kennedy did not report the stolen income on his 2010 through 2014 federal income tax returns, as required.
Kennedy was convicted by a federal jury of conspiring to defraud the United States and making false statements to a financial institution. Additionally, and prior to trial, Kennedy pleaded guilty to four counts of filing a false tax return. Kennedy was acquitted of embezzlement, wire fraud, money laundering, and engaging in unlawful monetary transactions. Even after the acquittal of several counts, Kennedy still faces decades in federal prison, supervised release, and other monetary penalties. He will be sentenced in early 2024.
Getting Right with the Government Before a Criminal Investigation or Prosecution
This is yet another example of the consequences that can arise from a tax investigation and criminal tax prosecution. If you have failed to file a complete and truthful tax return for one or more years, you should strongly consider seeking the counsel of an experienced tax defense attorney. Together, you will work to determine the exposure present in your case and work to establish a strategy to move you into tax compliance while attempting to mitigate the negative consequences of IRS or Department of Justice scrutiny.
We Are Here for You
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.
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 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!
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