A common misconception among taxpayers is the notion is that some professions are above the law. In this story, we will highlight the indictment of a Michigan attorney who is finding that he is not above the law. If you are behind on your taxes or believe that you have underreported income or overstated deductions, it is in your best interest to contact an experienced tax attorney to help resolve your situation, as soon as possible. The key to a civil resolution here is to reach out to the IRS before they identify your fraud.
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According to a Department of Justice press release, Carl Collins III, an attorney from Southfield, was indicted by a grand jury sitting in Detroit last week. The indictment included charges of tax evasion, filing false tax returns, and willfully failing to file individual and corporate tax returns.
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The indictment indicates that Collins, a personal injury attorney, also owned two medical rehabilitation companies and a real estate company also located and doing business in Michigan. The indictment charges that Collins filed his 2012 individual income tax return, intentionally failing to report more than $550,000 of income. In an effort to conceal his income from authorities, including the Michigan State Bar Foundation, Collins deposited the funds into an unreported attorney trust account, an account that is typically established to hold client funds. The indictment further charges that Collins paid personal expenses including the purchase of real estate out of the same attorney trust account.
Prosecutors allege that in 2015, Collins deposited an additional $580,000 of unreported income into the attorney trust account in an effort to evade the payment of tax. When Collins filed a delinquent return for 2015, the indictment alleges that he failed to report the $580,000 deposited in the attorney trust account and subsequently used for personal expenses. Finally, the indictment charges Collins with failing to file personal and corporate tax returns for various periods between 2013 and 2015.
If Collins is convicted, he faces five years in prison for the single tax evasion count, three years in prison for each of the two filing a false tax return counts, and one year for each of the seven willful failure to file a tax return counts. Additionally, Collins faces a term of supervised release after his incarceration and monetary penalties such as interest, penalties, and restitution.
This story is an example that anyone in the community can easily be the target of an IRS criminal tax investigation and subsequent Department of Justice criminal tax prosecution. Although Carl Collins is a licensed attorney who is held to a higher standard by the community, the IRS and Department of Justice will go after any taxpayer who has failed to uphold their obligations under federal tax law.
If you have failed to file tax returns or have filed tax returns that you believe may be incorrect, and now find yourself under audit, it is in your best interest to contact an experienced criminal tax defense attorney to determine the steps to civilly resolve your situation. Whether you have not filed a tax return in several years or believe that you have not included all of your income on your tax return, an experienced tax defense attorney will work with you to learn the facts and circumstances surrounding your particular situation and develop a strategy to minimize any potential civil or criminal negative repercussions.
The tax and accounting professionals at the Tax Law Offices of David W. Klasing have extensive experience representing taxpayers from all walks of life. Whether you are a business owner facing a sales and use tax audit or you have received notice that your individual return is being examined, our team of zealous advocates are standing by to help you develop a sound legal strategy that will keep your personal and financial interests and your liberty at the forefront of importance. Do not lose sleep over the possibility of tax evasion or other tax-related charges from the IRS or state taxing authorities. Contact the Tax Law Offices of David W. Klasing today for a reduced-rate consultation.
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