According to local media reports, Douglas Long, a resident of Upper Deerfield Township in New Jersey, pleaded guilty via video conference to a single count of tax evasion. This story should serve as a warning to taxpayers who have failed to live up to their tax compliance or payment obligations. Although the COVID-19 pandemic has had a paralyzing impact on the world economy, tax investigations and prosecutions continue to proceed. If you are out of tax compliance and need to get right with the government, it is in your best interest to contact an experienced tax attorney today.
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Long worked as an attorney throughout Cumberland County. Notably, he served as a solicitor for the Cumberland County Improvement Authority. He also provided various employment and labor law services to various municipalities. He performed much of his non-solicitor work through his law firm Long & Marmero LLP.
Prosecutors alleged that Long, like many others who have been charged and convicted of tax evasion, paid his and his families’ personal expenses out of his business bank account, resulting in a fraudulent tax deduction. Some of the expenses include private school tuition for Long’s children, student loan debt, and costs to upkeep his many residences. Long instructed his firm’s accounting staff to classify the above costs as business expenses.
Because Long’s partnership tax returns contained fraudulent deductions, his personal tax returns were also fraudulent (due to partnership items flowing through to a partner’s individual tax return). Authorities estimate that Long claimed fraudulent deductions totaling more than $800,000, which resulted in tax evasion of more than $250,000.
Long is scheduled to be sentenced in the fall and faces up to five years in federal prison. Additionally, Long could be sentenced to serve a term of supervised release upon the completion of his physical incarceration. Lastly, as a part of his plea agreement with the Department of Justice, Long agreed to pay restitution to the IRS.
The above story is a clear indicator that although most of the country is under stay-at-home orders, criminal tax investigations and prosecutions have continued. If you have failed to file a tax return for one or more years, or have taken a position on a filed tax return that could not be supported upon examination, it is in your best interest to consult with an experienced tax attorney.
There are various avenues that a taxpayer can take to come into compliance with federal or state tax laws. Your tax attorney will work to understand your situation and recommend that will yield the best result while minimizing potential risk. Regardless of the strategy implemented, it is important to know that the IRS and Department of Justice are still investigating and prosecuting criminal tax offenses.
The tax and accounting professionals at the Tax Law Offices of David W. Klasing have extensive experience representing a diverse group of taxpayers. From individuals to middle-market businesses and beyond, our team of zealous advocates will assist in the development of a strategy to help you reach your specific goals and objectives. Whether you are under a tax examination, criminal investigation or are in need of tax planning advice, contact the Tax Law Offices of David W. Klasing today, online or by phone at (800) 681-1295, for a reduced-rate consultation.
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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 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 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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