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Michigan Tax Professional Indicted on Federal Tax Obstruction, Other Charges

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    According to a Department of Justice press release, a Michigan tax professional was recently indicted for obstructing the IRS during its investigation into his own tax return falsification. This story should remind taxpayers that it is critical to file accurate annual tax returns and if you are examined or investigated by the IRS, you should not attempt to mislead or illegally thwart the government’s inquiries. If you have failed to file a tax return for one or more years, or have filed a tax return that contained knowingly false information, it is in your best interest to contact an experienced tax defense attorney to determine the best strategy to bring you into tax compliance without facing criminal tax prosecution.

    Defendant Allegedly Filed False Tax Returns, Made False Statements to IRS

    Court documents reveal that Raj Paruthi, of Novi, Michigan, was the owner and operator of his own CPA firm, focusing on the preparation of tax returns and the provision of accounting services. Between 2013 and 2014, Paruthi is alleged to have filed false tax returns for himself and his business. Federal prosecutors allege that Paruthi failed to report and pay taxes on hundreds of thousands of dollars of income that he earned through his business.

    In addition to allegedly falsifying his true income, federal prosecutors allege that Paruthi failed to report a bank account that he controlled in India as required as a part of the U.S. Foreign Bank Account Reporting (FBAR) regime. Lastly, Paruthi is alleged to have made false statements to the IRS about his personal and business income and expenses, his bank accounts, and his personal receipt of business funds.

    If Paruthi is convicted, he faces up to three years in federal prison for each count of filing a false tax return, three years for obstructing the IRS, one year for filing a false tax return, and five years in prison for failing to disclose his offshore bank account. He may also be ordered to serve a term of supervised release commencing upon the completion of any physical incarceration. Lastly, Paruthi may be ordered to pay restitution to the IRS representing the tax loss that he caused.

    Coming Into Tax Compliance with the Assistance of a Tax Attorney

    The defendant, in this case, started with a fact pattern that is not incredibly uncommon: a filed tax return that allegedly contained false information. In many situations, a taxpayer who finds themselves having filed a tax return that does not accurately reflect their true income or deductions can work with an experienced tax defense attorney to mitigate any civil or criminal risks by filing an amended return, voluntary disclosure or through another strategy. But the defendant in the instant case is alleged to have doubled down when questioned by lying to the IRS. While there are various strategies when responding to IRS inquiries, providing blatantly false responses is not advisable.

    If you have failed to file a tax return for one or more years, or have filed a tax return that contains false information, you should consult with an experienced tax defense lawyer to determine the best way for you to get right with the government. Together, you will work to establish the pertinent facts of your case. Then, you will mutually agree upon a strategy moving forward that will attempt to mitigate some of the potential civil or criminal penalties associated with tax noncompliance.

    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.

    Our office technology allows clients to meet virtually via GoToMeeting. With end-to-end encryption, strong passwords, and top-rated reliability, no one is messing with your meeting. To schedule a reduced rate initial consultation via GoToMeeting follow this link. Call our office and request a GoToMeeting if you are an existing client.

    Concerned About Criminal Tax Charges? Call the Tax Law Offices of David W. Klasing

    If you are dealing with serious tax matters, you deserve tax assistance that you can rely on. Schedule your first reduced-rate case evaluation with our Criminal Tax Defense Lawyers by calling (800) 681-1295 today or schedule online here.

    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.


    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 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, Kovel CPAs 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!

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