According to a Department of Justice press release, a New Jersey man was recently indicted on charges of tax evasion after being accused of underpaying his federal income tax liability by millions of dollars. This story should provide a compelling argument for taxpayers with outstanding tax debt or unfiled tax returns to come forward and come into federal income tax compliance. 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 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!
Court records reveal that Jason Kronick, 48, of Woodcliff Lake, New Jersey, was recently indicted on charges of tax evasion. Department of Justice prosecutors allege that between 2008 and 2010, Kronick earned substantial income, to the tune of $20 million. But when he filed his tax returns for those years, he reported substantially less income, resulting in an underpayment of tax of approximately $4.3 million. Additionally, and during the same period, Kronick is alleged to have used business bank accounts to pay for various extravagant personal expenses, including rare watches, home renovations, and gambling activities at local casinos. When the IRS inquired about his income in 2011, he was accused of lying to IRS agents, indicating that he had no income, although he earned more than $2 million.
If Kronick is convicted, he faces up to five years in prison for each count of tax evasion. Additionally, Kronick could be ordered to serve up to three years of supervised release, commencing upon the completion of his physical prison sentence. Lastly, he would likely be ordered to pay restitution to the IRS, representing the tax loss that he is alleged to have caused.
This story should serve as a reminder to taxpayers that the IRS and Department of Justice will not tolerate the evasion of taxes. In this case, the amount at issue is large, but Department of Justice prosecutors have been known to prosecute taxpayers for much less in controversy. The important takeaway is that tax evasion is tax evasion, regardless of the amount at issue.
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 examination, you should consider consulting with an experienced tax defense attorney. Together, you will determine the extent of your civil and/or criminal liability and work together to come back into compliance. While you are being represented by a seasoned tax attorney, you won’t have to go up against the IRS alone, allowing you to focus on the important 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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