According to a Department of Justice press release, a Michigan businessman was recently convicted of intentionally understating his business income for federal income tax purposes. This story serves as an example of the consequences of intentionally failing to comply with federal or state income 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 could not be supported upon audit or criminal tax investigation, it is in your best interest to contact an experienced tax defense attorney to determine the best strategy to get you right with the government without facing criminal tax prosecution.
According to court records, Ryan Richmond, residing in Bloomfield, was the proprietor of the marijuana dispensary named Relief Choices, LLC, operating in Warren, Michigan. During a period from 2011 to 2014, Richmond took measures to obscure the true extent of his business earnings. He implemented a strategy involving Relief Choices covering its operational expenses predominantly in cash. Furthermore, to mask the genuine business gross receipts, he channeled customer credit card transactions through a separate, unrelated third-party bank account.
Richmond's infractions didn't end at simply evading taxes. In 2015 and 2016, when the IRS initiated its eggshell audit / criminal tax investigation into the matter, Richmond employed deceptive tactics to hinder their investigation. He particularly misled an IRS auditor who was scrutinizing his personal income tax records. He was elusive regarding his awareness of, involvement in, and the profits he amassed from the Relief Choices venture. The result of Richmond's actions was significant, causing a tax loss to the IRS exceeding $1.15 million.
Richmond is slated for sentencing on Dec. 13th. He faces up to five years in prison for each count of tax evasion and up to three years for each count of obstruction. Additionally, Richmond could face a period of supervised release. Lastly, Richmond could and likely will be ordered to pay restitution to the IRS.
Ryan Richmond's case stands as a stark warning about the importance of tax compliance and the serious consequences of trying to circumvent one's federal tax obligations. Whether you're an individual or a business owner, if you have concerns or uncertainties related to your tax obligations, it's crucial to seek expert guidance to ensure you remain on the right side of the law.
If you have failed to file a tax return for one or more years, or have intentionally filed a false tax return, it is in your best interest to contact an experienced tax defense attorney to discuss your specific situation and your options to come into compliance.
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.
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 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 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!
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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