According to a Department of Justice press release, a North Carolina tax professional was recently sentenced for his role in a scam to generate fraudulent tax refunds by creating fake business losses, over-inflating deductions and fraudulently claiming tax credits. This story should remind taxpayers that the IRS is constantly and consistently on the lookout for those who fail to properly file their tax returns and pay their taxes and those that assist them. 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 if civilly or criminally challenged by the IRS, it is in your best interest to seek the assistance of an experienced dually licensed tax defense attorney & CPA. Your risk of criminal or civil investigation & audit exposure is never higher than at the beginning of a tax season where the IRS looks to create a deterrent to the public by seeking civil and criminal noncompliance targets.
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, Kovel CPAs 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!
Court records reveal that Gene Hersholt Williamson II owned and operated a tax preparation business in Jacksonville, North Carolina. Between 2012 and 2018, he assisted hundreds of clients filing tax returns that resulted in more than $500,000 in fraudulent refunds. Federal investigators alleged that Williamson used the Earned Income Credit as the mechanism to generate such refunds. Williamson created fake Schedule C business income and deductions to maximize the Earned Income Credit. He earned 10% of all refunds received by his clients. In a further attempt to conceal his illegal actions, Williamson did not appear as the paid preparer on his clients’ tax returns.
Williamson was sentenced to serve 36 months in federal prison for aiding and assisting in the preparation of fraudulent tax returns. Additionally, he was sentenced to serve three years of supervised release upon the completion of his physical incarceration. Lastly, Williamson was ordered to pay $637,000 in restitution to the IRS.
Although the defendant in the story above was specifically interested in manipulating Schedule C amounts to take additional Earned Income Credits for his clients, the IRS aims to identify and investigate any instance of tax fraud or evasion. If you have failed to file a tax return for one or more years or have taken an unsupportable position on your tax returns, it is in your best interest to rectify the problem before it is discovered by the government.
Working with an experienced tax defense attorney has many valuable benefits. First, you will work together to determine an efficient and realistic path toward getting right with the government that removes or minimizes the risk of criminal tax prosecution. For many taxpayers, the hardest step is knowing how to get started in the process and “keeping their scalp”. As you move toward coming into compliance, your tax attorney will represent you at every stage in the process. Thus, you will never need to go up against the IRS alone. From filing returns with the government to representing you at mandatory interviews or hearings, your dually licensed Tax Attorney & CpA will be by your side until the civil resolution of your tax matter.
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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