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Michigan Co-Defendants Face Tax and Wire Fraud Charges

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    According to a Department of Justice press release, a group of Michigan men were recently indicted on wire fraud and tax fraud charges related to a conspiracy to steal vehicle accident data from the Detroit Police Department. This story is a reminder that regardless of how you come about items of income, you are generally required to report it on your federal and state income tax returns and pay the associated tax even where the income is from illegal sources. If you have failed to file a tax return for one or more years or have taken a position on a tax return that omits a substantial amount of income, it is in your best interest to consult with an experienced tax defense attorney as soon as possible to determine the best avenue to bring you into tax compliance without facing criminal tax prosecution.

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    Defendants Are Alleged to Have Understated Income on their Individual Tax Returns

    Court records reveal that John Angelo and Rosina Angelo, among other co-conspirators, worked together to use stolen login information from the Detroit Police Department to steal traffic accident reports and identify those who had been involved in the crashes. Once identities were obtained, the co-conspirators would make referrals to chiropractic businesses in exchange for a fee. John Angelo and Rosina Angelo are both accused of working together to hide large sums of income to keep it off John Angelo’s individual tax return. Instead, the money was funnelled into a nominee entity. The IRS estimates that the taxes associated with the tax fraud scheme exceeded $1.3 million.

    If convicted on the wire fraud counts (relating to the theft of the crash information), the defendants could face up to 20 years in federal prison. If convicted on the tax fraud counts, John Angelo and Rosina Angelo could face up to five years in prison. Finally, the Angelos face up to three years in prison for aiding in the preparation of a false tax return.

    When to Get Right with the Government

    The story above reminds everyday taxpayers that failing to include substantial amounts of income on a tax return has very real consequences that can include spending time in a federal prison. Whether you have failed to adequately report your income on an annual basis or have failed to file a tax return for one or more years altogether, it is in your best interest to discuss your case with an experienced tax defense attorney.

    Working with a seasoned tax lawyer has a plethora of benefits. First, a tax attorney’s wealth of experience allows them to analyze your situation and draw from a multitude of potential strategies to bring your case to an amicable resolution. Additionally, your tax attorney will ensure that you only provide the IRS or state taxing authority with only the information that they are legally entitled to request. Finally, with an experienced tax lawyer by your side, you will never have to go up against the IRS alone.

    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 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.

    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!

    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 

    In addition to our main office in Irvine, the Tax Law Offices of David W. Klasing has unstaffed (conference room only) satellite offices in Los Angeles, San Bernardino, Santa Barbara, Panorama City, Oxnard, San Diego, Bakersfield, San Jose, San Francisco, Oakland, Carlsbad and Sacramento. During the COVID-19 pandemic, our staff are working from home, but have full virtual meeting capability.

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