According to a Department of Justice press release, a Minnesota man was sentenced to 108 months in prison for wire fraud and assisting in the preparation of false tax returns. This story emphasizes the importance of federal income tax compliance. If you have failed to file a federal or state income tax return for one or more years, or have filed a false tax return, you should strongly consider consulting with an experienced tax defense attorney to determine the best strategy to come back into tax compliance.
Defendant Orchestrated the Filing of 63 False Tax Returns
Court records reveal that from 2012 to 2018, Beau Wesley Gensmer of Prior Lake executed a scheme involving 63 false tax returns that claimed inflated refunds. Gensmer hired tax preparers, provided them with fraudulent information, and charged clients a 30% commission on the fraudulent refunds. His actions caused a tax loss of approximately $6.7 million. In addition to his prison sentence, he was ordered to pay $4,716,732.35 in restitution and serve three years of supervised release.
Severe Consequences for Tax Fraud and The Importance of Seeking Help
This case highlights the serious repercussions of engaging in dishonest or blatantly illegal behavior related to federal and state tax compliance. Gensmer’s actions included submitting false documents to the IRS during audits, exacerbating the severity of his crimes.
If you have failed to file a tax return altogether or have filed a tax return that contains inaccuracies, it is crucial to seek assistance from an experienced tax defense attorney. A knowledgeable lawyer can help you navigate the complexities of state and federal tax law, develop a strategy to address any outstanding issues, and work towards tax 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 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!
