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New York Man Pleads Guilty to Attempting to Obtain Fraudulent Tax Refunds

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November 13, 2020
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November 15, 2020

New York Man Pleads Guilty to Attempting to Obtain Fraudulent Tax Refunds

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According to a Department of Justice press release, a New York Man recently pleaded guilty to his role in a scheme to fraudulently obtain millions of dollars of refunds from the IRS through the filing of false tax returns. If you have filed a tax return with understated income, overstated deductions / tax credits, or have failed to file a tax return altogether, it is in your best interest to contact an experienced tax defense attorney as soon as possible to determine the best method to come into compliance.

Defendant Admitted to Falsifying Forms 1099

Court documents reveal that Jose Andreu of Newburgh, New York, recently pleaded guilty to conspiracy to defraud the United States. The government alleged, and Andreu admitted that, with the assistance of a tax return preparer, he caused several tax returns to be filed that claimed fraudulent refunds. As a part of the scheme, Andreu and his co-conspirator generated false Forms 1099-OID, insinuating that financial institutions had withheld taxes, when no tax had been withheld. The IRS estimated that more than $2,125,872 of fraudulent refunds were claimed by Andreu and his co-conspirator.

Sentencing has been scheduled for February of 2021. At that time, Andreu faces up to five years in federal prison. He will also likely be sentenced to a term of supervised release upon the completion of his physical incarceration. Lastly, Andreu will likely be ordered to pay restitution to the IRS for the tax loss that he and his co-conspirator caused.

Seeking the Assistance of a Tax Lawyer

Filing false tax returns claiming that tax had been withheld when it hasn’t been a common tax scheme faced by the IRS. As technology and the IRS’ ability to digitally detect tax fraud increases, an increasing number of taxpayers have found themselves the subject of tax investigations or criminal tax prosecutions. The reality is that when money is paid or federal tax is withheld and a taxpayer is provided with a tax form by the payor/withholding agent, the IRS also gets a duplicate copy of the same form. Thus, a simple matching exercise at the IRS generally uncovers who is lying about taxes that were withheld at their payment source.

If you have filed a tax return that has been misleading about the amount of federal tax that had previously been withheld, have understated income, or have overstated deductions or tax credits, you should strongly consider contacting an experienced tax defense lawyer to determine the best way to come into tax compliance without facing criminal tax prosecution. As we indicated earlier, there are advanced techniques being utilized by the IRS to detect tax fraud. It is no longer safe to assume that a small amount of untruthfulness on a tax return will go unnoticed. Getting right with the government is the only way to ensure that you won’t be the subject of an IRS criminal tax investigation or criminal tax prosecution.

Note: As long as a taxpayer that has willfully committed tax crimes (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!

We Are Here for You

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.

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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