According to a Department of Justice press release, an Ohio tax attorney was recently sentenced to serve a term in federal prison for intentionally impeding IRS tax administration and collection efforts. Although the charges in the instant case were levied against a tax attorney, such charges can be brought against anyone who has endeavored to impede IRS efforts. If you have either failed to file a tax return, taken improper deductions, or have made false statements to the IRS in an attempt to get out of paying your tax bill, it is in your best interest to contact an experienced tax defense attorney to determine the best steps to take to mitigate your potential criminal and civil exposures.
Defendant Falsified Documentation and Lied on Behalf of a Client
Court documents reveal that Marcus Dunn, an Ohio tax attorney, was sentenced to serve 36 months in a federal prison after Dunn pleaded guilty to intentionally impeding IRS tax collection efforts. Prosecutors asserted that Dunn assisted Dr. Kevin Lake on various tax matters prior to Lake’s death. During their working relationship, Dunn falsified documentation provided to the IRS that was requested upon the examination of Dr. Lake’s clinic tax returns. When the IRS eventually assessed additional tax, Dunn provided false information that indicated that Dr. Lake’s businesses had no assets and thus the underlying tax could not be paid.
The IRS and Department of Justice estimate that Dunn’s illegal activity caused a tax loss of more than $600,000. In addition to the three years of imprisonment imposed, the court ordered that Dunn also serve three years of supervised release upon the completion of his physical incarceration. Restitution was already paid using funds that were seized from Dr. Lake prior to the doctor’s death.
Tax Strategy vs. Impeding the IRS
There is nothing illegal about structuring your personal or business affairs in a manner that results in paying less tax. That being said, there is a difference between legal tax structuring and lying to or otherwise impeding the IRS in their efforts to assess and collect taxes. For instance, selling property that generates a capital gain in the same year that you have a capital loss is efficient tax planning. On the other hand, lying to the IRS by indicating that you are insolvent to thwart tax collection efforts can be considered illegal obstruction of the IRS.
If you have made statements on your tax returns or to an IRS agent that are untrue, it is in your best interest to contact an experienced tax defense attorney to determine your best path forward. Additionally, if you have received notice from the IRS that your tax returns will be examined, a tax defense attorney is a key asset to help ensure that false statements are not made during your interactions with the government. Being represented by an experienced tax attorney means that you will not have to go up against the IRS alone.
We Are Here for You
Regardless of your particular 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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Questions and Answers About Tax Relief and Tax Resolution
- What to do if there is an IRS discrepancy in amounts owed?
- What are IRS allowable expenses?
- Does the IRS allow other expenses as necessary expenses?
- What do I do if I owe payroll taxes?
- Can I set up a payment plan for unpaid payroll taxes?
- How is our tax relief law firm different?
- What are the failure to pay tax penalties?
Questions and Answers on Offer in Compromise
- Do I need to provide financials if the IRS requests them?
- How does the IRS calculate my income?
- David W. Klasing Offer in Compromise help
- How long does it take to get an Offer in Compromise?
- What exactly is an Offer in Compromise?
- How exactly do I apply for an Offer in Compromise?
- How to protect my Offer in Compromise from being revoked
- Prerequisites to obtaining an Offer in Compromise
- Form 433-A (OIC) Collection Information Statement with OIC
- When will the IRS entertain an Offer in Compromise?
- What are the ways Offers in Compromise can be paid
- Objectives of the IRS Offer in Compromise Program
- Will Offer in Compromise affect criminal tax liability?
- Offer in Compromise includes liabilities prior to marriage
- What payments are required with an Offer in Compromise
- Will an Offer in Compromise affect installment agreement
- Offer in Compromise effect on statute of limitations
- Filing Offer in Compromise affect collection actions?
- How will I know if my Offer in Compromise is accepted?
- What happens when IRS finds something wrong with my offer
- Why was my offer found to be unacceptable?
- Is an accepted Offer in Compromise public record?
- What legal effects does entering into an Offer in Compromise have on a taxpayer?
Questions and Answers on Tax Liens, Levys and Tax Garnishments
- Spouses tax liability at life and death
- 2016 Changes to IRS Collections
- What Do You Do If You Owe Money to the IRS and You Cannot Pay the Balance Due Right Away?
- How long can the IRS collect on a past due debt?
- Do You have Unfiled Personal Income California Tax Returns?
- What are some events that can suspend or extend the collection statute allowing the IRS more time to collect on an outstanding tax debt?
- What happens when the collection statute expires?
- How much time does the CA Franchise Tax Board have to collect on an outstanding tax debt?
- Frivolous Collection Due Process Hearing Requests
- IRS Collection Notices
- What do you do if you owe sales tax to the CA Board of Equalization?
- When should I file a Collection Appeal Protest (CAP)?
- Differences between a CDP Form 12153 and Form 9423
- My Employer Received Form 668-W, Notice of Wage Garnishment
- Can the IRS levy my Social Security benefits?
- How to release the wage levy?
- What is a federal tax lien?
- What is the effect of a federal tax lien?
- Can a taxpayer challenge the filing of a federal tax lien?
- How do I get a tax lien removed or released?
- What do I do if the IRS issues a bank levy?
- How to Release a Bank Levy?
- What if I am an employer and the levy attached to payroll?
- What additional information does the IRS need from me?
- What is a Collection Due Process (CDP) Hearing?
- What is an Equivalency Hearing?
- I received a notice from the IRS, what do I do?
- I moved and never received notices from the IRS
