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Oklahoma Businessman Recently Pleads Guilty to Tax Evasion

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    According to a Department of Justice press release, an Oklahoma businessman recently pleaded guilty to tax crimes. When taxpayers neglect their tax obligations or knowingly file false returns, they risk severe civil and criminal tax consequences. If you find yourself in a situation where you have failed to file a return for one or more years, or you have filed a return that was knowingly false, it is crucial to consult with an experienced tax attorney to help you determine the next best steps to come into compliance without facing criminal prosecution.

    Defendant Admitted to Intentionally Misclassifying Wages as Other Payments, Attempting to Thwart Tax Withholding and Wage Reporting

    Court records reveal that Phillip Barry Albert, the President of Pelco Structural LLC, pleaded guilty to evading over $1 million in income taxes. From 2014 to 2019, Albert directed his company’s outside payroll service to pay him over $2.6 million, classifying these payments as reimbursements rather than income. By doing this, federal income taxes were not withheld, and the payments were not reported on his Forms W-2 as taxable wages.

    As a result of his actions, Albert filed individual income tax returns for 2014 through 2019 that did not report the taxable payments, causing a tax loss to the IRS of $1,000,232. This case illustrates the consequences of failing to accurately report income. Albert now faces a maximum penalty of 5 years in prison, along with a period of supervised release, restitution, and monetary penalties.

    Coming Into Tax Compliance with the Assistance of a dual licensed Tax Attorney & CPA Before It’s Too Late

    The importance of filing timely and correct individual and business tax returns cannot be overstated. Intentional tax noncompliance can result in significant legal, financial, and reputational consequences, especially if your situation is referred to the DOJ for potential criminal tax prosecution.

    Failing to follow tax laws can result in severe penalties, as demonstrated by the case of Phillip Barry Albert, above. To avoid finding yourself in a similar situation, always ensure your tax returns are accurate and filed on time. If you are unsure about your tax obligations or have concerns about past filings, consult with an experienced tax attorney to help guide you through the process and protect your physical and financial freedom.

    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 authority audit, eggshell audit, reverse eggshell audit, or criminal tax investigation, it is in your best interest to contact an experienced tax defense attorney to determine your best route back into federal or state tax compliance without facing criminal prosecution.

    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, 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.

    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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