A recent Department of Justice press release revealed that a New Jersey man was recently convicted of conspiring to defraud the IRS through a scheme involving claiming refunds that he or his clients were not entitled to. The takeaway from this story is that although you may be able to achieve a tax refund in the short term, if such a refund claim is fraudulent, it is only a matter of time until the IRS will catch up and come knocking, generally with more than just a demand for the return of the refund. If you have filed your taxes inaccurately, resulting in a lower tax bill or a refund, it is in your best interest to contact an experienced tax defense attorney to discuss your options to come into tax compliance before the IRS initiates an audit or criminal investigation, or refers your case to the Department of Justice for potential criminal prosecution.
Note: As long as a taxpayer that has willfully committed tax crimes (potentially including fraudulent refund claims coupled with affirmative evasion of U.S. income tax 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!
According to court records, John Barry Jr. of Pemberton, New Jersey was recently convicted of conspiring to defraud the United States. Along with co-conspirators, Barry assisted in the filing of fraudulent tax returns on behalf of clients. Barry told potential clients that they could pay off their mortgage debt by obtaining tax refunds. Unbeknownst to Barry and his co-conspirator’s clients, refunds from the IRS were fraudulently claimed by representing that financial institutions had made payments to the taxpayers and had withheld substantial amounts of federal income tax, for which a refund was claimed by Barry. The defendant took a fee of between 20 and 35 percent of the refund obtained by the client. All-in-all, the IRS estimates that they paid out more than $3 million in false refunds to Barry’s clients. In addition to the refund scheme described above, Barry was also convicted of failing to file his own 2016 federal income tax return, despite earning substantial amounts of income.
When the dust settled, Barry was convicted on multiple counts of conspiracy to defraud the IRS, aiding and assisting the filing of false tax returns, obstructing the internal revenue laws, and failure to file a tax return. Sentencing is scheduled for this winter. Barry faces more than a decade in prison. Additionally, Barry will likely be ordered to serve a period of supervised release upon the completion of any physical incarceration. Lastly, Barry will likely be ordered to pay restitution to the IRS, representing the tax loss that he caused taxpayers.
The above story illustrates the importance of filing accurate income tax returns. Although the defendant in this case helped multiple taxpayers file fraudulent returns, the IRS process for identifying and investigating potential bogus refund claims remains the same. If you have failed to file a tax return in the past or have filed a return with incorrect information in order to reduce your tax liability or to generate a refund, it is imperative that you discuss your potential exposure with an experienced tax defense attorney.
With the help of a seasoned tax lawyer, you will jointly establish the details of your case and identify the most efficient way to get right with the government. While your tax attorney works through the process of bringing you into tax compliance, you will not need to liaise with the IRS alone. Further, handing over the heavy lifting to a dual-licensed Tax Lawyer and CPA will allow you to spend time focusing on the important and much more joyful things in life.
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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