According to a Department of Justice press release, a Michigan real estate consultant recently pleaded guilty to filing a false tax return after omitting hundreds of thousands of dollars of income. This story should remind taxpayers that willfully failing to report all items of income, overstating deductions and credits on your annual tax return can result in severe and potentially life-changing civil and criminal consequences. If you have failed to file a tax return for one or more years, or have failed to accurately complete your federal tax return by omitting items of income or inflating items of deduction or credits, it is in your best interest to consult with an experienced tax attorney to determine the best strategy to get right with the government without facing criminal tax 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 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!
Court documents reveal that Steven A. Mills worked as a real estate consultant. Between 2012 and 2015, Mills’ real estate company, Mills Real Estate Consulting LLC, received multiple substantial payments from third parties. Instead of reporting all the payments received on his federal income tax returns, Mills only reported a portion of them. For instance, Mills’ 2014 individual income tax return failed to report over $350,000 of taxable income received in that year.
The defendant is scheduled to be sentenced later this year and faces up to 36 months in federal prison for filing a false tax return. In addition to physical incarceration, the defendant could be sentenced to up to three years of supervised release to commence upon his release from prison. Finally, the defendant may be ordered to pay restitution to the IRS representing the total amount of tax loss caused.
Working with a tax advisor to structure your affairs in a way to minimize taxation is not illegal. There are various strategies and methods that can be used to reduce a taxpayer’s overall tax burden thoughtfully and legally. Nonetheless, willfully omitting items of income from your federal income tax return is not one of those permissible strategies. Taxpayers are required to report all items of income on an annual basis unless the federal tax laws specifically allow for different treatment of an item of income.
As the defendant in the case of above has likely come to understand, there can be severe consequences to willfully violating federal tax laws. If you believe that you may have failed to properly report all your income or have overstated items of deduction, you should contact a seasoned dual licensed Civil & Criminal Tax Defense Attorney & CPA to discuss your options to come back into tax compliance and avoid criminal tax prosecution. Together, you will work to establish the important facts of your situation. Then, you will develop a strategy to help mitigate some of the potentially severe consequences of a tax examination, eggshell audits, reverse eggshell audits, criminal tax investigation, or criminal tax prosecution. While you are being represented by experienced tax counsel, you won't have to go up against the IRS or Department of Justice alone.
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.
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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