According to a Department of Justice press release, a Rhode Island physician was recently sentenced to serve a term of home confinement after pleading guilty to tax evasion and health care fraud. The defendant’s circumstances are a reminder that any accession to wealth, legal or illegal, must be included in gross income on your annual tax filings. If you have failed to file a tax return for one or more years or have failed to properly include all items of income on a filed tax return, it is in your best interest to seek the assistance of an experienced tax attorney to determine the best strategy to bring you into tax compliance.
Court documents reveal that Eugene Kramer was the owner and operator of New England Spine and Disc Center. The defendant admitted to, on several occasions, billing for chiropractic treatments that he did not perform. He also admitted to falsifying medical chart information and visit notes to provide the appearance that he had actually provided medical care during those billed visits.
Between January 1st and December 31st 2018, Kramer admitted to working with an attorney to fraudulently make insurance claims. As a part of that scheme, Kramer provided the attorney with records for visits that did not occur and the attorney would forward them on to insurance companies for which the attorney was working with to resolve personal injury claims, who unknowingly paid them. To make the fraudulent visits more believable, Kramer falsified visit notes and medical diagnoses that were transmitted along to the attorney and ultimately, to the insurance companies.
As a part of Kramer’’s guilty plea, he admitted to failing to include fraudulent income that he earned from the schemes described above on his individual income tax returns for 2015, 2016, and 2017. The IRS and Department of Justice estimate the tax loss caused by Kramer to be approximately $66,000.
Kramer was sentenced to serve three years of probation, the first six months of which are to be served as home confinement. Additionally, Kramer was ordered to pay a $25,000 fine. Lastly, he will be required to perform 900 hours of community service while serving his probation.
While engaging in health care fraud may be a rather uncommon occurrence, lying on a tax return about how much income you or your business earned is not. Although taxpayers around the country believe that shaving off little chunks of income or trumping up deductions for expenses not incurred here or there will not cause any harm, it is important to know that the IRS takes such offenses very seriously. In fact, over the past year, the IRS has gone on a hiring spree in an attempt to beef up their audit teams.
If you have failed to file a tax return for one or more years, have failed to properly account for all sources of income, or have untruthfully inflated your deductions, you should contact an experienced tax attorney to help you determine the next steps in getting right with the government. Together, you and your seasoned tax lawyer will establish the pertinent facts of your case, develop a sound strategy, and execute such strategy. All the while, you will never have 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 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.
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.
Our office technology allows clients to meet virtually via GoToMeeting. With end-to-end encryption, strong passwords, and top-rated reliability, no one is messing with your meeting. To schedule a reduced rate initial consultation via GoToMeeting follow this link. Call our office and request a GoToMeeting if you are an existing client.