According to a Department of Justice press release, a tax professional from Mississippi was recently sentenced to serve 22 months in federal prison after being convicted of illegally attempting to seek fraudulent refunds from the IRS. This story is of importance for taxpayers who have taken steps to lower their tax liability through illegal measures. If you have underreported your income, overstated deductions, or claimed credits to which you were not entitled, you should consider consulting with an experienced tax attorney and determine the best strategy to come into compliance and remove the risk of criminal tax prosecution entirely.
Court records reveal that Talvesha Glaude owned and operated a tax return preparation business under several names including TMG Tax Service. Between 2013 and 2019, Glaude prepared tax returns for clients and claimed fraudulent refunds causing a tax loss of over $180,000. To effectuate her scheme, Glaude claimed false tax withholding, underreported income, claimed non-existent dependents, and claimed tax credits that her clients were not entitled to. Additionally, prosecutors accused Glaude of filing false tax returns for tax years 2014 through 2018.
In addition to being sentenced to serve 22 months in federal prison, Claude was sentenced to serve one year of supervised release upon the completion of her physical incarceration. Lastly, Claude was ordered to pay restitution to the IRS in the amount of $183,360, representing the tax loss that she caused.
Although the IRS cannot identify every single taxpayer who has taken a fraudulent position on their tax return, technology at the Treasury Department has evolved exponentially over the past decade. The use of complex data analytics and other methods allows the IRS to review many more tax returns than they used to. If the computer system identifies a tax return with potential badges of fraud, it will be reviewed manually. Depending on the results of that review, the taxpayer may receive a notice of examination or a criminal tax investigation may be initiated.
If you have taken a position on your tax return that is at risk of being discovered through the IRS tax review systems or if you have failed to file a tax return for one or more years, it is in your best interest to contact an experienced tax defense attorney to determine the best strategy to get right with the government. Luckily, the IRS has established several programs and tax defense have several strategies to bring taxpayers into tax compliance. Regardless of the method used to become compliant, you will never need to go up against the IRS or state taxing authority alone.
Note: As long as a taxpayer that has willfully committed tax crimes 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!
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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