According to a Department of Justice press release, a North Carolina tax professional recently pleaded guilty to conspiring to defraud the United States. As we move into tax compliance season, it is important to remember that fraudulent tax minimization efforts such as understating income, inflating business expenses, or falsely claiming credits can constitute a criminal offense and can result in a prosecution and a federal or state prison sentence. 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 during an audit, eggshell audit, reverse egg shell audit or criminal tax examination, you should contact an experienced criminal tax defense attorney as soon as possible to determine the best steps to get right with the government.
Defendant Helped Taxpayers Claim Fraudulent Refunds
Court records reveal that Hildares Kinkesha Parker-Greene was a tax return preparer in the Kinston, North Carolina area. Between January and March of 2016, Parker-Greene assisted taxpayers prepare their returns. Operating out of her home with a co-conspirator, she prepared returns claiming fraudulent items of wages and withheld taxes. Additionally, she helped clients claim phony dependents. During her mere three months of illegal activity, she caused a tax loss of more than $550,000.
Parker-Green will be sentenced later. She faces up to five years in federal prison for conspiring to defraud the United States. Additionally, she will likely be ordered to serve a period of supervised release upon the completion of her physical incarceration. Lastly, Parker-Greene will likely be ordered to pay restitution to the IRS representing the tax loss that she caused.
Getting Right with The Government Before It is Too Late
Many Americans view the tax compliance process as an opportunity to slip small inaccuracies by the IRS. It is a common belief that, because the IRS deals with so many tax returns, there is no way that they can catch every taxpayer who understates their income or inflates business expenses. But the reality is that the IRS has leveraged technology that helps revenue agents home in on those tax returns that show “badges of fraud”. The IRS data analytics capabilities allow its software to analyze returns for potential fraud that may not be picked up by a manual review by a revenue agent. A recent hiring spree by the IRS clearly evidences the agency’s desire to ramp up enforcement efforts across the country.
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 audit, it is in your best interest to contact an experienced tax defense attorney. Together, you will gather the relevant facts pertaining to your case. Then, you will jointly decide the best course of action to bring you into compliance with the government. Throughout the process, you will always be represented by your seasoned tax lawyer. Thus, you will never need to go up against the IRS alone.
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.
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More Commonly Asked Tax Audit Questions
- How should Tax Audits be Handled by Criminal Tax Counsel?
- How to survive audit when I cheated on return being audited
- What is an eggshell audit?
- What is a reverse egg shell audit?
- Why is a reverse egg shell audit dangerous for a taxpayer?
- Warning signs of a criminal referral from an IRS audit
- Effective tax defense counsels goals in an egg shell audit?
- How are the 4 goals and outcomes 1 and 2 best obtained?
- What are the possible outcomes of an egg shell audit?
- Is it my right to know why I was selected for examination?
- What can I do to prepare for an audit?
- What is an IRS civil examination?
- How IRS decides which tax returns are audited
- What are my appeal options if I disagree with IRS?
- What are my basic taxpayer rights if the IRS audits me?
- Options if I am unable to pay at the conclusion of audit
- What a 30 or 90-Day Letter from the IRS means
- What is involved with appealing disagreements?
- Rights to disagree with IRS tax auditor’s findings
- Can I stop the IRS from repeatedly auditing me?
- Can I have the examination transferred to another area?
- Can I record my IRS interview and is it a good idea?
- How many years of returns are at risk during an audit?
- Common reasons for the IRS to conduct a tax audit
- How to avoid negative consequences from an IRS interview
- Have to agree to interview by taxing authority directly?
- Are all audits the same?
- What should I do if the IRS is investigating me?
- What if I don’t respond to a taxing authority audit notice
- Your rights during an IRS tax audit
- Risks of attending an IRS audit without a tax lawyer
- Most common audit technique used by taxing authorities
- Don’t go into an IRS audit without representation
- Why hire an attorney to represent me in an audit?
- Why hire David W. Klasing to represent me in an audit
Questions and Answers for Criminal Tax Representation
- When tax defense counsel parallels tax crime investigation
- Guilty of tax obstruction by backdating documents?
- To be found guilty of tax obstruction must a person actually be successful in impeding the IRS’s functions?
- Help! The Document I Gave the IRS Had False Information
- Tax crime aiding or assisting false return IRC §7206(2)
- What is the crime known as tax obstruction § 7212?
- What is the difference between tax perjury and tax evasion?
- What is the tax crime commonly known as tax perjury?
- What is a Klein Conspiracy?
- Increased possibility of civil action in IRS investigation
- Am I Guilty of Tax Evasion if the Law is Vague?
- What happens if the IRS thinks I committed tax crimes?
- What are ways to defend against a tax evasion charge?
- Difference between criminal tax evasion and civil tax fraud
- What accounting method does the IRS use for tax fraud
- Can I Change Accounting Method to the Accrual Method
- What is the willfulness requirement for tax evasion?
- I didn’t know I committed tax fraud. Can I get off?
- Concealed assets from IRS. Can I avoid tax evasion charges
- How government proves I willfully engaged in tax evasion
- What is the venue or court where a tax crime case is heard?
- Must the IRS prove tax crimes beyond a reasonable doubt?
- Is it a crime to make false statements to the IRS?
- Will the IRS overlook my tax evasion if it’s minor?
- Failed to tell IRS about my nominee account
- Audit risk with cash based business transactions
- How to defend a client charged with tax evasion
- Is it tax evasion if I didn’t file income tax return?
- Government says I attempted to evade my taxes. Now what?
- I forgot to pay my taxes or estimated tax. Is this a crime?
- Government proof I “willfully” failed to pay taxes
- 5 Ways to Respond to Tax Evasion Charges
- Being audited after using a tax professional
- Rules for what an IRS agent can do while investigating me
- How tax preparers, attorneys and accountants are punished
- How the IRS selects tax crime lead for investigation
- How does the IRS prosecute suspected tax crimes?
- Does IRS reward informant leads for suspected tax crimes?
- How the government proves deficiency in a tax evasion case
- Do prior tax crimes factor into new IRS tax convictions?
- Requesting conference before investigative report is done
- Requesting conference after IRS Special Agent Report
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- What can you generally tell me about tax crimes?
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- What the IRS includes in indictment for tax case
- What is the hardest element of a tax crime to prove?
- IRS methods of gathering evidence to prove tax crime
- What does a grand jury do in IRS tax crime prosecution?
- Failure to keep records or supply information
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- What is attempting to evade payment of taxes?
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- IRC §7201 attempt to evade vs. common-law crime of attempt
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- Are Tax Laws Constitutional?
- What is the source of law that defines tax evasion?
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- What is a proffer agreement and what are the risks?
- Why to have an attorney to review a proffer agreement
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- Difference between civil and criminal fraud allegations
