According to a Department of Justice press release, a New York City Council member recently pleaded guilty to filing a knowingly false tax return. This story evidences the fact that no matter your role in society, the IRS and state taxing authorities will work to bring to justice those who are intentionally or unintentionally not in compliance with their income tax obligations. If you have failed to file a tax return for one or more years or have taken a position on a filed tax return that could not be supported upon an audit, eggshell audit, reverse egg shell audit or criminal tax investigation, you should contact an experienced tax defense attorney to help you get right with the government.
Court documents reveal that Chaim Deutsch owned a real estate management company, in addition to serving on the New York City Council. Federal prosecutors alleged that between 2013 and 2015, Deutsch used his real estate business to earn additional income that was not properly reported on his federal income tax return. The IRS estimates that Deutsch caused a tax loss of at least $82,076.
Deutsch will be sentenced later. At that time, he faces up to one year in federal prison. Additionally, Deutsch could be ordered to serve one year of additional supervised release upon the completion of any physical incarceration. Lastly, Deutsch already agreed to pay restitution to the IRS, representing the tax loss that he caused.
Over the past year, the IRS has made an intentional effort to beef up their headcount to ensure that they can examine more taxpayers than ever before. The charges that were brought against the New York City Councilman detailed above shows taxpayers of all backgrounds that the nation’s tax laws apply equally and will be enforced against anyone who chooses to break them. Many taxpayers who have fallen behind on their taxes believe that the best course of action is to ignore their potential liability and go about their lives. That strategy may work on a short-term basis, but it is certainly not sustainable.
Consulting with an experienced tax defense attorney, you will work to identify areas of potential exposure. Next steps involve developing and implementing a strategy that aims to bring you into tax compliance while keeping your physical and financial freedom top of mind. While you are represented by a seasoned tax attorney, you will not have to go up against the IRS or state taxing authorities.
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!
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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