A paving business owner in Weymouth was recently in the news after being charged and pleading guilty to an indictment alleging that he had evaded nearly $600,000 in taxes. Court documents suggest that the defendant underreported income on his personal tax returns across several years and claimed to have sold the business while still retaining control.
These and other cases have been coming up more frequently than they have in the recent past, suggesting that the projected rise in IRS activity and enforcement is indeed taking effect. Now more than ever, it is important to look back to make sure that all of your tax affairs are in order.
Do not wait until it is too late to avoid invasive and potentially criminal tax enforcement government action. Call the Dual Licensed Tax Attorneys and CPAs at the Tax Law Offices of David W. Klasing at (800) 681-1295 or click here to schedule a reduced-rate case evaluation.
On Friday, July 15, the Department of Justice announced via press release that the owner of a Norfolk County paving company was charged and has agreed to plead guilty in connection with a seven-year scheme to fraudulently underreport taxable income on his tax returns.
Robert Brainard, 52, of Weymouth, agreed in principle to plead guilty to one count of tax evasion. Brainard entered his plea on July 25 in front of U.S. District Court Judge Leo T. Sorokin of the Federal District of Massachusetts. Judge Sorokin scheduled sentencing for October 17, 2022.
According to the charging document, Brainard, the former owner of Got Pavement Needs, Inc., underreported income on his personal tax returns for tax years 2014 through 2021, resulting in an income tax loss of more than $593,993. In addition, to hide his control of the business, Brainard allegedly transferred ownership of his company in a straw sale, while maintaining control over the company’s operations and income.
The charge of tax evasion provides for a sentence of up to five years in prison, up to three years of supervised release and a maximum fine of either $250,000 or twice the gross gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
The statute that defines federal tax evasion is 26 U.S.C. § 7201. To establish tax evasion, the government must prove that there was an affirmative, willful act to evade a tax assessment or payment of a tax that was assessed, and that the additional tax is rightfully still owed. If these elements may seem similar to the general requirements for the various tax fraud statutes, that’s because they are. Tax evasion can be thought of as a smaller facet within the long arm of tax fraud law.
The Treasury Department estimates that around $600 billion dollars go uncollected in taxes each year because of lacking enforcement, and that the top 1% of taxpayers are responsible for a quarter of that uncollected tax revenue. Those numbers are for unpaid tax and seemingly do not even include estimates for uncollected penalties.
Increasing tax revenue by going after high-asset taxpayers, investors, and corporations has been a stated goal of the Biden Administration and its allies in Congress for a while now, so it would not be surprising for these efforts to increase.
With increased audits and criminal tax enforcement action are on the horizon, it is important to work with a tax professional you can trust and to get out ahead of any potential tax issues you face while there is still time to fix any past mistakes. Consider working with a Dual Licensed Criminal Tax Defense Attorney and CPA today rather than risking your financial future, tax penalties, or even potential jail time for past tax mistakes.
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. I 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 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 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, Kovel CPAs 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!