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North Carolina Tax Professional Indicted for Helping File Fraudulent Returns

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North Carolina Tax Professional Indicted for Helping File Fraudulent Returns

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According to a Department of Justice press release, a North Carolina tax professional was recently indicted on criminal counts related to her preparation of false tax returns on behalf of her clients. As we approach the end of the year, we are again reminded that the intentional filing of tax returns that are known to be false can result in federal prison time for both the preparer and the taxpayer.

It is well known to the taxing authorities that tax preparers that routinely cheat on behalf of their client’s will invariably be incredibly popular with likeminded client’s through word of mouth and will consequently have a line around the block at tax time and therefore they have a financial incentive to cheat the system. Unfortunately, it does not take long for the IRS and FTB to independently catch on through statistical return analysis and if you hear your preparer is under criminal investigation, is simply unreachable, or you learn that nearly every client they have including yourself is simultaneously under audit, you would be wise to call us BEFORE speaking to the IRS or state taxing authority to minimize the odds of being simultaneously criminally prosecuted yourself. 

If you have failed to file a tax return for one or more years, have under-reported income, or overstated deductions or tax credits, it is in your best interest to contact an experienced tax defense attorney to develop a plan to come into tax compliance and remove the risk of criminal prosecution.

Defendant Helped Clients Lie About Items of Income, Deduction, and Withholding

Court records reveal that Hildares Kinkesha Parker-Greene owned and operated a tax preparation business serving North Carolina clients. Between 2016 and 2018, Parker-Greene prepared tax returns for clients that she knew to be false. To generate fraudulent refunds, Parker-Greene claimed deductions that her clients were not entitled to and claimed non-existent tax withholdings. In addition to being indicted on tax evasion counts, Parker-Greene was indicted on additional counts of filing false tax returns.

If she is convicted, Parker-Greene faces up to five years in prison for tax evasion and up to three years in prison for each count of filing a false tax return. Additionally, she faces a term of supervised release upon any physical incarceration. Lastly, if Parker-Greene is convicted, she will likely be ordered to pay restitution to the IRS, representing the total tax loss that she caused the government in cheating for multiple clients.

Coming into Compliance Before the IRS Initiates a Criminal Tax Investigation or Audit

Although this story involved a tax preparer, the takeaway is universal. If you take a position on your tax return that you know to be fraudulent, the IRS and Department of Justice will not hesitate to criminally investigate and prosecute you. The result can be devastating. Luckily, there are several options to come into compliance.

Working with an experienced tax defense attorney, you can establish the facts of your situation. Together, you will agree on a strategy to bring you back into tax compliance. One of the greatest benefits of being represented by a tax attorney is never having to go up against the IRS alone. Coming into compliance before the IRS opens an audit or initiates a criminal tax investigation is a time sensitive matter. If you have fallen behind on your taxes or have a history of being untruthful on your tax returns, you should contact your experienced tax attorney without delay.

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!

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.

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.

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