According to local media reports, a Nebraska woman recently pleaded guilty to two felony counts related to a tax scheme that involved both the underreporting of income and the failure to remit collected sales tax. This story should serve as a reminder to California business owners who may have taken illegal measures in the past to lower their total tax bill. Although there are perfectly legal tax planning strategies available, blatant lying on a California tax return or the failure to file a California tax return are not examples of them. If you are out of compliance with your taxes, it is in your best interest to contact an experienced tax attorney to discuss your options.
State tax authorities in Nebraska opened a criminal tax investigation, which resulted in criminal tax charges against Kylie L. Blecke, 44, of Plattsmouth. According to investigators, Blecke opened a cleaning business several years ago and although she collected sales tax from customers, failed to remit a large portion of it. Additionally, investigators discovered that Blecke had also underreported income from her business on her individual income tax return.
State revenue authorities estimate that Blecke caused an income tax loss of more than $56,000 and a sales tax loss of nearly $63,000. Blecke pleaded guilty to two felonies, one related to sales tax collection and the other for the tax evasion activity. Blecke’s sentencing is scheduled for July. As a part of her plea agreement, Blecke agreed to pay restitution for the full amount of income and sales tax loss that she caused.
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In the wake of the COVID-19 pandemic, there has been a relative slowdown in the number of new investigations and prosecutions of tax crimes. That being said, once the U.S. begins to normalize and workers begin returning to offices and the government starts to work face-to-face with taxpayers, we expect an exponential jump in the number of Americans both investigated for and charged with criminal tax counts. But those taxpayers who are currently out of compliance who aim to get right with the government presently have a golden opportunity to do so.
Working with an experienced tax attorney and a team that is working at full-capacity during the stay-at-home orders, taxpayers will be able to establish the particular facts of their case and develop a plan to come into compliance with tax laws. Although the IRS may have hit the proverbial pause button, taxpayers need not remain frozen. Getting caught up with late filings or tax years with inaccuracies on a filed tax return can be achieved while the IRS has put a pause on new examinations.
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!
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Regardless of your business or individual tax 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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