New York Business Owner Pleads Guilty to Tax Evasion

Former Kentucky Public Schools Official Indicted on Tax Evasion Charges
April 19, 2020
Photo by Kelly Sikkema on Unsplash
Tax Relief Procedures for Certain Former Citizens
April 21, 2020

New York Business Owner Pleads Guilty to Tax Evasion

According to various local news reports, a New York businessman recently pleaded guilty to tax evasion, resulting in a tax loss of nearly $400,000. This story highlights the need for taxpayers to receive ongoing effective tax advice and to seek the assistance of an experienced tax defense attorney should the IRS ever audit their tax return or pursue a criminal tax investigation.

Businessman Conceals Income, Pleads Guilty to Tax Crimes

According to prosecutors, Antonio Nikc of Chappaqua, New York, arranged his affairs in a manner that caused him to severely under report his income, conceal the source of his income, and otherwise make it nearly impossible for the IRS to determine the true amount of federal income tax due. Consistent with taxpayers who attempt to conceal their financial activity, Nikc used business bank accounts to pay for his lavish personal expenses.

The IRS did not receive a tax return or tax payment from Nikc for the five-year period beginning in 2010. When pleading guilty at his arraignment, Nikc agreed that his actions caused a tax loss of at least $395,745.

See our Non-Filer Q and A Library

What to Do If You Are Contacted by the IRS

The defendant in the story above is not alone in his attempt to evade taxes by keeping his financial affairs as obscured from view as possible. It is extremely common to see defendants in tax evasion cases using business bank accounts to pay for their personal expenses, which are often over-the-top and once spotted by the IRS or other government investigators, are a strong indicator that tax fraud may be at play.

When a taxpayer receives notice that their tax returns are being audited or that the IRS is investigating a taxpayer’s failure to file a tax return for one or more years, the taxpayer’s first call should be to an experienced tax defense attorney. Much of the government’s prosecutorial ammunition comes at the beginning of a case when taxpayers feel like they can take on the IRS alone. Those taxpayers will generally give up information that will later be used against them.

The Benefits of a Tax Defense Lawyer

An experienced tax defense attorney will work with their client and provide representation at any interaction with the IRS (or state taxing authority) to ensure that a taxpayer does not do themselves any harm in the way that questions are responded to. Likewise, a tax defense lawyer will work with the taxpayer to develop and implement a strategy aimed at minimizing the potential damage that can be caused by an IRS investigation or prosecution.

Contact an Experienced Tax Attorney Today

The tax and accounting professionals at the Tax Law Offices of David W. Klasing have extensive experience representing a diverse group of taxpayers. From individuals to middle-market businesses and beyond, our team of zealous advocates will assist in the development of a strategy to help you reach your specific goals and objectives. Whether you are under a tax examination or are in need of tax planning advice, contact the Tax Law Offices of David W. Klasing today, online or by phone at (800) 681-1295, for a reduced-rate consultation.

Here is a link to our YouTube channel: click here!

Note:  As long as a taxpayer that has willfully committed tax crimes (potentially including non-filed returns coupled with affirmative evasion of payment) 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!

See our 2011 OVDI Q and A Library

See our FBAR Compliance and Disclosure Q and A Library 

See our Foreign Audit Q and A Library

Regardless of your particular business 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.