According to a Department of Justice press release, a Hennepin County attorney has been indicted on charges of employment tax violations and aiding the filing of false individual income tax returns. This case serves as a stark reminder of the importance of tax compliance and the potential civil and criminal penalties that can arise from filing false tax returns. Taxpayers who have fallen behind on their tax filings or have filed a false tax return should seek assistance from an experienced tax attorney in order to avoid criminal tax prosecution.
Defendant Failed to Pay Over Employment Taxes for Employees
The indictment states that between 2016 and 2019, Kassius Orlando Benson owned and operated a law practice, known at various times as Kassius Benson Law, P.A. or Office of Kassius O. Benson, P.A. Benson allegedly failed to file the required Employer’s Quarterly Federal Tax Returns for his law practice and did not pay over to the IRS the employment taxes withheld from his employees’ wages.
Additionally, the indictment alleges that for the years 2017 to 2019, Benson knowingly aided in the preparation of his own false individual income tax returns (Forms 1040) by claiming that his law practice withheld federal income taxes from his wages and had paid those withholdings to the IRS. As the owner and sole shareholder of his law practice, Benson was aware that his practice had not paid any of the federal income taxes he claimed had been withheld from his wages.
Appreciating the Severity of Criminal Tax Charges
The charges brought against Benson emphasize the significance of adhering to federal income tax laws, particularly those pertaining to the withholding, account for, and paying over of employment taxes. Noncompliance with these tax laws can lead to severe civil and criminal consequences, as evidenced by the multiple counts brought against the defendant.
If you find yourself in a situation where you are not in tax compliance, because you have failed to comply with payroll tax rules, due to failure to file a tax return for one or more years, or because of a position taken on a tax return that would not hold up under IRS scrutiny, it is imperative to consult with a seasoned tax attorney. A knowledgeable attorney can help you navigate the complexities of the tax system and work towards resolving your tax issues, helping you avoid the costly penalties that may arise from tax noncompliance.
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 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!
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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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Questions About Delinquent Payroll Taxes and Trust Fund Recovery Penalty
- What happens if an employer continues to incur new payroll tax liabilities?
- California Employment Taxes Basics
- How Does the IRS Develop an Employment Tax Fraud Case from the First Indication of Fraud to a Criminal Indictment?
- Can more than one person be considered responsible by IRS
- How unpaid employment tax payments are allocated
- When a corporate officer is considered a responsible party
- Examples of trust fund recovery penalty determinations
- Failing to pay employment taxes after notice is given
- How to determine responsible person for trust fund recovery
- Assessing trust fund recovery penalty and option to appeal
- What is the trust fund recovery penalty?
- What are the penalties for failure to pay employment taxes
- When am I considered liable for company’s employment taxes
