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Mother-Daughter Defendants Plead Guilty to Multiple Counts of Tax Evasion

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According to a press release by the Internal Revenue Service, a mother and daughter recently pleaded guilty to tax evasion after dodging the payment of federal taxes for over 20 years. This story should serve as a warning to those taxpayers who have failed to file a tax return for one or more years. If you are behind on your taxes or have failed to make payments to the IRS as owed or agreed, it is in your best interest to seek the assistance of an experienced tax defense attorney to come into tax compliance.

Defendants Worked Together to Hide Assets, Avoid Paying Taxes

Information released by the IRS reveals that Theresa R. Gregory of Mount Vernon, Ohio, and Tera L. Gore of Croton, Ohio each recently pleaded guilty to five counts of income tax evasion. According to IRS investigators, Gregory, the mother of Gore, earned millions of dollars per year working with a multi-level marketing business. Although Gregory had federal income tax withheld from her W-2 wages, she failed to file a tax return for more than 20 years and failed to pay tax on any of her multi-level marketing earnings.

To evade the payment of taxes, Gregory enlisted the help of Gore, her daughter, and transferred substantial amounts of assets into her name. When Gregory’s accountants became suspicious of her and her daughter’s activity, they were fired. According to the IRS, Gregory and Gore went through several accountants who raised questions about their practices over the years.

The IRS estimates that the total tax loss associated with Gregory and Gore’s scheme totaled more than $3.7 million. When the defendants are sentenced, each face up to five years in prison per each of the five counts of tax evasion. Additionally, the defendants will likely be ordered to pay restitution to the IRS representing the tax loss caused by their illegal activity.

Coming into Compliance Before the IRS Comes for You

The above story is a shining example of what can happen when taxpayers fail to file their tax returns each year. Failing to file your tax return for one year can happen easily. After that, it becomes easier and easier to simply forget about taking the necessary steps to come back into compliance. Before you know it, it has been five or ten years since you have filed a tax return and it seems impossible to catch up.

Working with an experienced tax defense attorney, you will jointly determine the best route to come back into tax compliance while attempting to minimize the potential penalties associated with years of having not complied with the tax laws. While you are being represented by a tax lawyer, you will not have to go up against the IRS alone.

Note:  As long as a taxpayer that has willfully committed tax crimes (potentially including non-filed returns coupled with affirmative evasion of payment) 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!

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. During the COVID-19 pandemic, our staff are working from home, but have full virtual meeting capability.

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