According to a Department of Justice press release, a Missouri amusement business owner recently pleaded guilty to one count of filing a knowingly-false tax return. This story should resonate with and serve as a warning to taxpayers who have failed to file a tax return or taken a position with knowingly false tax positions related to understating income or overstating deductions or credits because they illegally sought to pay less taxes. 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 examination or criminal tax investigation, you should contact an experienced tax defense lawyer as soon as possible to determine the best strategy to get right with the government.
Court records reveal that Jerry Don Beebe owned and operated Beebe’s Roaring River Waterslide in Cassville, Missouri. Federal investigators believed that Beebe reported far less income relating to the waterslide that he made on his federal tax returns. As a part of an undercover investigation where a federal agent posed as a potential buyer for the waterslide business, Beebe uncovered the true income of the business, which for years 2015 through 2018 was generally more than $100,000 than what was reported for federal income tax purposes.
When the federal agent probed Beebe as to why there was such a disparity between the business’s reported income and its actual income, Beebe indicated that he simply did not want to pay additional income tax. Beebe indicated that he was in the habit of destroying the books and records indicating the true earnings of the business on a frequent basis as to not leave any evidence behind. It is estimated that Beebe’s tax scheme caused more than $50,000 in tax loss to the IRS and nearly $20,000 in tax loss to Missouri.
Beebe will be sentenced early next year and faces up to three years in federal prison. Additionally, Beebe will likely be ordered to serve a term of supervised release upon the completion of any physical incarceration he is sentenced to serve. Lastly, as a part of his guilty plea, Beebe agreed to pay more than $70,000 in restitution to be split between the IRS and Missouri.
This case is simple in nature and reflects the sentiment of most Americans who get caught cheating on their taxes: they simply did not want to pay any additional tax. Although the premise is simple, the consequences can be catastrophic. Instead of preparing to spend the holidays with his family, the defendant in the above case now must prepare for the possibility that he will spend several years in a federal prison.
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 audit or an criminal tax investigation, it is in your best interest to work with a seasoned tax lawyer to get right with the government. Together with your experienced criminal tax defense lawyer, you will establish the pertinent facts of your case and agree on the best strategy to move you into tax compliance. One of the most valuable benefits of being represented by a tax attorney is never having to go up against the IRS alone.
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!
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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