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New York Tax Accountant Pleads Guilty to Conspiracy to Defraud the United States

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New York Tax Accountant Pleads Guilty to Conspiracy to Defraud the United States

 

According to a Department of Justice press release, an accountant from White Plains, New York recently pleaded guilty to conspiring to defraud the United States as a part of an income tax scheme with a client. This story should serve as a reminder to our readers that the IRS and Department and justice will not hesitate to investigate and criminally prosecute instances of federal tax noncompliance by fraudulent preparers and by the investigated preparers clients. If you have filed a tax return for one or more years that materially misrepresents your true business activities, you should consider consulting with an experienced tax attorney as soon as possible. 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!Defendant Helped Client File False Tax Returns, Faces Prison Time

We recently brought you a blog post detailing the prosecution of Rocco Manzione of Queens, New York. Manzione was the owner and operator of various concrete businesses, including Advanced Transit Mix Corp (ATMC). Federal prosecutors allege that Manzione violated employment tax laws. Additionally, prosecutors allege that Manzione evaded the payment of his own individual income taxes by not filing tax returns, although he earned more than $2 million between 2015 through 2017. In order to evade the source of his income, prosecutors allege that Manzione transferred funds from ATMC and his other companies to a nominee corporation from which he paid for his personal expenses.

Additionally, federal prosecutors allege that in an effort to borrow money to purchase a condominium in Florida, Manzione worked with John Savignano, an accountant, to file false tax returns that severely understated his income. Savignano’s efforts to help Manzione file false tax returns caused a tax loss of more than $400,000 Savignano will be sentenced early 2022 and faces up to five years in federal prison. Additionally, he may be ordered to serve up to three years of supervised release and pay restitution to the IRS.

Getting Right with The Government After Filing a Fraudulent Tax Return

Taxpayers who have failed to file tax returns for one or more years will oftentimes file tax returns for the years for which they had not previously filed as a way to come back into tax compliance. That being said, falsifying those delinquent tax returns simply trades one set of civil and criminal exposures for another. In both situations, the repercussions can be life-altering.

If you have failed to file a tax return for one or more years or have filed a tax return that was knowingly false, you should contact an experienced tax defense attorney to determine your level of civil and criminal exposure. Together, you will develop a roadmap that will help you come into compliance while attempting to mitigate some of the pitfalls commonly encountered by taxpayers who have fallen out of federal income tax compliance. While you are represented by a seasoned tax attorney, you won’t need to go up against the IRS or Department of Justice alone.

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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.

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