According to a Department of Justice press release, a New Jersey businessman was recently convicted of tax crimes relating to his business. This story provides a clear example of the serious civil and criminal tax consequences that can result from failing to comply with federal tax laws. If you have filed a tax return that was knowingly false or has failed to file a tax return altogether, it is in your best interest to seek the advice of a seasoned tax defense attorney to help you come back into compliance without facing criminal tax prosecution.
Defendant Underreported Income and Failed to Comply with Employment Tax Laws
Court records reveal that Zeki Donuk, a resident of Landing, managed a construction enterprise initially branded as Titan Builders LLC and later renamed Titan Steel Construction LLC (collectively referred to as “Titan”). Between 2016 and 2019, Donuk attempted to evade taxes by cashing business checks instead of depositing them into business bank accounts. This led to the underreporting of income in Titan’s corporate tax return. The omission also extended to his and his spouse’s personal tax returns, where the cashed amounts were never declared as income.
Donuk’s illegal activity didn’t stop at evading business and personal income taxes. He admitted that between the third quarter of 2016 and the third quarter of 2017, he failed to follow employment tax laws. Donuk failed to collect, account for, and remit employment taxes withheld from his employees’ wages to the IRS. Furthermore, he did not submit the mandatory quarterly employment tax returns representing the business during these quarters.
Donuk could face up to five years in prison for each count of federal tax evasion. Additionally, he could be sentenced to serve a period of supervised release upon his completion of a period of physical incarceration. Lastly, Donuk will likely be ordered to pay restitution, representing the tax loss he caused the IRS.
Coming Into Tax Compliance After Falling Behind
The case of Zeki Donuk serves as a stern reminder of the importance of adhering to tax laws and the risks associated with attempting to thwart these obligations. If you have failed to file a tax return for one or more years, or have failed to truthfully report your business or personal income, you should contact an experienced tax defense attorney. You will work together to develop a plan to get right with the government while keeping your physical and financial freedom top of mind.
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 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!
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.
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Questions and Answers for Criminal Tax Representation
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