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According to a Department of Justice press release, a New York woman recently pleaded guilty to aiding in the filing of a false tax return. This story illustrates the potential serious negative consequences that can accompany a federal criminal tax investigation and prosecution. If you have filed a false tax return or have failed to file a tax return altogether, it is in your best interest to contact an experienced tax defense attorney to develop a strategy to get you right with the government without facing criminal tax prosecution.
Court records reveal that Alice Bixuan Zhang, pleaded guilty recently for contributing to the formulation of a fraudulent tax return. A resident of Queens, Zhang was a co-owner of Wellife Physical Therapy and Acupuncture PLLC and Welling Physical Therapy and Acupuncture PLLC, both of which had multiple locations across New York City. Along with Nikki B. Yu, who accepted her guilt in October 2020, they set up what appeared to be management companies. The intention was to hide revenue generated from the acupuncture businesses, thereby evading taxation. Both Zhang and Yu diverted funds from Welling and Wellife without reporting these earnings to the IRS.
The duo cashed checks payable to their so-called management companies from accounts of Wellife and Welling at a check-cashing enterprise, further disguising their incomes. Subsequently, they provided incomplete and misleading information to their tax preparers by failing to declare these cashed sums. Their elaborate scheme to veil this income led to a tax loss exceeding $784,000 for the IRS. A court date for sentencing Zhang has been set for December 14, 2023. Zhang could face up to three years of incarceration, alongside a potential period of supervised release, restitution, and monetary fines.
As the defendant in this case will likely find out, the consequences of intentionally violating federal tax law can be severe, even life-altering. The IRS has advanced tremendously in the past decade in their ability to use technology to identify those who may be violating tax laws. The good news is that there are strategies that can help bring a willfully noncompliant taxpayers back into compliance without facing criminal tax prosecution. With the assistance of a seasoned tax attorney, you can work to identify the pertinent facts of your case and develop a plan to right your ship while keeping your financial and physical freedom top of mind.
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 disclosure before 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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