New York Business Owner Pleads Guilty to Conspiring to File False Tax Returns

New IRS Enforcement Programs to Focus on Foreign Accounts, Bitcoin and Other Cryptocurrencies
Does the IRS Share Voluntary Disclosure Information with State or Local Authorities?
August 6, 2020
Navigating the New Pass-Through Tax Rules
August 8, 2020

New York Business Owner Pleads Guilty to Conspiring to File False Tax Returns

New York Business Owner Pleads Guilty to Conspiring to File False Tax Returns

According to a Department of Justice press release, a New York tax preparation business owner recently pleaded guilty to conspiring to file false tax returns. This story illustrates the serious consequences for failing to file timely and accurate tax returns. If you have failed to file a tax return for one or more years, you should strongly consider seeking the assistance of an experienced tax attorney to help you come into tax compliance.

Defendant Overstated Clients’ Tax Withholdings, Seeking Fraudulent Refunds

Court documents reveal that Richard Barker was the owner and operator of Tax Depot, Inc, a Queens tax preparation company. Between 2011 and 2017, federal prosecutors alleged that Barker filed taxes on behalf of clients claiming a significant amount of tax withholdings, generating a large number of federal tax refunds.

In addition to aiding his clients to file false returns, he also filed false returns for himself, his co-conspirator, and other individuals. Barker admitted to filing returns claiming more than $530,000 in false refunds. Although not all the refund claims were paid, the IRS estimates that Barker caused a total tax loss of more than $460,000.

Barker will be sentenced later this year. He faces up to five years in federal prison. Additionally, Barker will likely be ordered to serve a period of supervised release upon the completion of his physical incarceration. Lastly, he will most likely be ordered to pay restitution to the IRS for the tax loss that he caused.

Coming into Tax Compliance Before the IRS Contacts You

The defendant, in this case, filed multiple tax returns with the intent of generating false refunds. Nonetheless, the overarching theme of the story applies to all taxpayers: the IRS will come after those who fail to properly and accurately file their tax returns. It is easy to make a mistake on your taxes, but if the IRS detects “badges of fraud”, the tax return may be referred to the IRS criminal investigations unit, who will determine whether a taxpayer intentionally lied on their tax return.

If you have failed to file a tax return for one or more years or have failed to be completely honest on your filed returns, it is in your best interest to contact an experienced tax defense attorney to determine what steps are necessary to bring you into tax compliance. The IRS has employed various technology tools to weed out those who have cheated on their taxes. Taxpayers generally experience better outcomes when they correct tax noncompliance on their own rather than waiting for the IRS to come knocking.

We Are Here for You

Regardless of your particular 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. During the COVID-19 pandemic, our staff are working from home, but have full virtual meeting capability.

Our office technology allows clients to meet virtually via GoToMeeting. With end-to-end encryption, strong passwords and top-rated reliability, no one is messing with your meeting. To schedule a reduced-rate initial consultation via GoToMeeting follow this link.   Call our office and request a GoToMeeting if you are an existing client.

Questions and Answers for Criminal Tax Representation