According to a Department of Justice press release, a New Jersey resident and political consultant was charged with tax evasion, failing to file a tax return, and the corrupt interference of the administration of internal revenue laws. Although the specific facts in this story may be unique to the named defendant, the overarching theme of failing to pay taxes and attempting to cover it up is all too common. If you have failed to file a tax return for one or more years or have taken a position on a tax return that would not be supportable under examination, it is in your best interest to seek the assistance of an experienced tax defense attorney.
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Defendant Accused of Failing to File Returns or Pay Tax
Prosecutors allege that Thomas Bertoli, 62, of Matawan, New Jersey, earned a substantial amount of income, failed to file tax returns or pay tax on such income, and intentionally took steps to frustrate attempts by the IRS to collect the tax debt he owed. The income in question arose from Bertoli’s businesses The Doormen Inc, City Street Associates LLC, and Urban Logistics LLC. As a part of his businesses, Bertoli provided consulting services, primarily focused around obtaining expedited building and construction permits, as well as cutting through other administrative red tape on behalf of developers.
IRS investigators assert that Bertoli earned hundreds of thousands of dollars in consulting income between 2009 and 2016, but failed to file a tax return indicating any taxable income for such years. Furthermore, the IRS has only received a nominal payment of $5,000 for all Bertoli’s 2009 through 2016 tax liability.
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After the IRS began collection efforts, Bertoli is alleged to have taken steps to thwart the collections process. Federal prosecutors allege that Bertoli used check-cashing techniques to avoid depositing checks from clients into his personal bank accounts. Additionally, Bertoli is alleged to have used bank accounts from his businesses to pay for his personal expenses. Finally, the Department of Justice believes that Bertoli lied to IRS agents about his financial circumstances to avoid paying the taxes that he owed.
If convicted, each count of tax evasion carries a maximum sentence of five years in federal prison. Bertoli faces up to three years on the corrupt IRS interference charge and could serve up to one year for each count of failure to file a tax return. If Bertoli is convicted, he will also likely be ordered to serve a period of supervised release and be required to pay restitution to the IRS.
Falling into the Non-Compliance Trap
The defendant in the story above likely had several opportunities to get help and get right with the government. Many taxpayers who find themselves having not filed tax returns for one or several years often think about the steps that it would take to get back into tax compliance and become overwhelmed, leading them to ignore the looming problem until they come face to face with IRS correspondence demanding tax returns be filed or tax debt paid. Even then, some taxpayers will ignore their circumstances for as long as they can. In most cases, the result could have been improved by simply working with an experienced tax defense attorney and taking the necessary steps to come back into compliance.
Working with an experienced tax defense attorney, you can share your particular circumstances, pressure points, and optimal resolution. The two of you will then jointly develop a strategy to make your way back into tax compliance while defending against some of the negative results that can come from an IRS examination or DOJ criminal prosecution. When you work with an experienced tax lawyer, you will not have to go up against the IRS alone.
We Are Here for You
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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