According to a Department of Justice press release, a Michigan lawyer recently pleaded guilty to conspiring with others to defraud the IRS through underreporting business income and charges related to stealing documents from the Detroit Police Department. When individuals and businesses intentionally underreport income, the taxpayers are only an examination or IRS criminal tax investigation away from a potential lengthy federal prison sentence. If you have failed to file a tax return for one or more years, or have taken a position on your federal or state income tax return that could not be supported upon examination or investigation, you should strongly consider seeking the assistance of an experienced tax defense attorney.
Note: As long as a taxpayer that has willfully committed tax crimes (potentially including non-filed returns coupled with affirmative evasion of payment) 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!
Defendant Stole Documents from the Police and Attempted to Dodge the IRS
Court records reveal that Mathew Schwartz, the owner and operator of Legal Genius P.L.L.C., a Michigan law firm, conspired with others to steal records from the Detroit Police Department. The records generally included detailed automobile crash information that was used by Schwartz and his co-conspirators to solicit the victims of such accidents for legal and medical services.
From 2015 through 2017, Schwartz made various attempts to impede and obstruct the IRS’s ability to collect tax debt owed by Legal Genius. Schwartz funneled income from his clients to his personal bank account or paid those whom he owed money to in checks payable to “cash” to help those individuals dodge their tax obligations, as well.
Schwartz’s sentencing is scheduled for early next year. He faces up to five years in prison for each count. Additionally, the defendant is likely to be sentenced to serve a period of supervised release upon the completion of his physical incarceration. Lastly, Schwartz will likely be ordered to pay restitution to the IRS representing the tax loss caused by his illegal activities.
When to Contact an Experienced Tax Lawyer
Taxpayers who own their own businesses may sometimes find it difficult to keep their business finances separate from their individual finances. Although buying yourself lunch from your business bank account is not likely to garner much attention from the IRS (so as long as such amount is not improperly deducted), siphoning money out of your business bank account into your personal bank account with the intent to not pay federal income tax on such earnings could land you in federal prison for tax evasion.
If you have failed to file a tax return for one or more years or have taken a position on a tax return that would be difficult to defend upon a state or federal audit, it is in your best interest to contact an experienced tax defense lawyer. Working together, you will establish the particular facts and circumstances of your case and develop the best route to get right with the government. Although dealing with the IRS can be full of uncertainty, one thing is always true: when you are represented by a tax defense attorney, you won’t have to go up against the IRS alone.
We Are Here for You
Regardless of your particular 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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