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According to a Department of Justice press release, Michigan attorney Carl L. Collins, III, was convicted by a federal jury of willfully filing five false tax returns for himself and one of his businesses. This story illustrates the seriousness of a criminal tax investigation resulting from being accused of violating federal tax laws. If you have failed to file a tax return on a timely basis or have filed a return that falsified your income or deductions, you should contact an experienced tax defense attorney to determine how to get right with the government.
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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, consider hiring the Tax Law Offices of David W. Klasing. Hiring our firm can make all the difference between paying the proper amount of income taxes due, as opposed to doing jail time, paying a hefty penalty, and paying for the cost of a long and agonizing prosecution.
As a personal injury lawyer with offices in Southfield, Michigan, Collins also owned a real estate company, First Third LLC, and two medical-related companies, MedCity Rehabilitation Services LLC and Alpha Living LLC. At trial, evidence proved that Collins did not report substantial income he received from these businesses and deposited into undisclosed Interest on Lawyer’s Trust Accounts (IOLTA), bank accounts to be used by lawyers solely to hold money in trust for clients. As a result, Collins was able to conceal these funds from his tax preparers and the IRS.
In total, Collins was convicted of filing false personal tax returns for 2012, 2015, and 2018, filing a false 2012 amended return, and filing a false 2015 corporate return for Alpha Living. The evidence established that Collins did not report approximately $600,000 in income he earned in 2012, over $800,000 in income in 2015 and $300,000 in income in 2018. Collins is scheduled to be sentenced on March 21, 2023 and faces a maximum penalty of three years in prison for each count of filing a false tax return. He also faces a period of supervised release, restitution, and monetary penalties. Tax Evasion is an act or moral perpetuate and disbarment is also a likely outcome of this case especially considering his misuse of his retainer account.
This case serves as a sobering reminder of the serious consequences that can result from failure to comply with tax laws. At the Tax Law Offices of David W. Klasing, we take our responsibility to our clients seriously, and will work tirelessly to ensure that you're in compliance with all applicable federal and state tax laws. If you have failed to file a tax return for one or more years, or have taken a position on a tax return that was knowingly false, you should contact an experienced tax defense attorney as soon as possible to discuss your options to come into tax compliance.
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.
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