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New Jersey Businessman Sent to Prison After Tax Conviction

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    According to a Department of Justice press release, a New Jersey man was recently sentenced to serve a federal prison sentence following a criminal tax conviction. This story illustrates the potentially life-altering consequences that can arise after an IRS criminal tax investigation and Department of Justice Tax Division prosecution. If you have failed to file a tax return for one or more years, or have taken a position on a tax return that could not be substantiated upon audit, it is in your best interest to contact an experienced tax defense attorney as soon as possible to bring yourself into tax compliance.

    Defendant Filed False Tax Returns

    Court records reveal that Gabriel Ferrari of Edison, New Jersey, the owner and operator of Buses and Trucks, Inc. was recently sentenced to one year and one day in prison following a criminal tax conviction. The charges arose from Ferrari’s filing of a false corporate income tax return with the IRS. Court documents and testimony revealed that Ferrari had diverted business funds to pay for personal expenditures, such as gambling on horse races, in 2011. The concealment of this income diversion, not disclosed to his tax preparer, led to the submission of a fraudulent corporate tax return.

    Adding to Ferrari’s crimes, he was found guilty of neglecting to pay employment taxes totaling $291,600, arising from unreported cash payroll. Beyond the prison sentence, U.S. District Judge Stanley R. Chesler has also mandated that Ferrari serve one year of supervised release. On top of this, Ferrari has been ordered to pay approximately $87,926 in restitution to the United States, providing some financial recuperation for the tax fraud committed.

    Getting Right with the Government with the Help of a Tax Attorney

    The story above is an example of the extreme penalties that can arise when a taxpayer is convicted of a tax crime. As technology has progressed, the ability of the IRS to detect tax cheats has likewise moved forward. It has become much easier for IRS agents and criminal tax investigators to sniff out those who have willfully violated federal tax laws. The IRS’s civil and criminal enforcement budget has also recently increased dramatically.

    If you have failed to file a timely income tax return or have failed to be truthful in your tax filings, you should contact a seasoned tax attorney to discuss your options to come into compliance. Together, you can establish the pertinent facts of your case and develop a strategy to get you right with the government, all while keeping your physical and financial freedom top of mind.

    If you have failed to file a tax return for one or more years or have taken a position on a tax return that could not be supported upon an IRS or state tax authority audit, eggshell audit, reverse eggshell audit, or criminal tax investigation, it is in your best interest to contact an experienced tax defense attorney to determine your best route back into federal or state tax compliance without facing criminal prosecution.

    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 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!

    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. You can schedule a four-hour consultation at any of our satellite offices by following this link.

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