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The IRS and the California state taxing authorities conduct countless tax audits annually. Being selected for a tax audit can be stressful, especially if undisclosed foreign accounts and unreported offshore income-generating assets are involved. Suddenly, the path to compliance narrows, and the potential for severe civil and possibly criminal tax penalties, or even criminal tax prosecution, looms large, particularly if the non-compliance is deemed deliberate.
If you’re in or near Oxnard and realize that you could face criminal tax prosecution over a history of blatantly cheating on your tax returns if discovered, voluntarily disclosing this history by knocking on the IRS’s door before they bang down your door, offer a nearly guaranteed method towards resolution without facing criminal tax prosecution.
If you have failed to file California income tax returns, California state voluntary disclosure programs may be able to provide a resolution, such as the FTB Voluntary Disclosure Program or an FTB Filing Compliance Agreement. Sometimes, it may be more practical to file delinquent or amended returns, depending on your specific circumstances. Since noncompliance with state or federal income tax laws can trigger costly failure-to-pay or failure-to-file penalties, following the law is essential. A lawyer for unfiled taxes can help you find ways to resolve issues with state or federal back taxes.
Understanding IRS Disclosure Requirements for Oxnard Taxpayers
Ownership or merely an interest in income-generating offshore assets or businesses overseas means you are most likely subject to the IRS’s disclosure requirements for foreign accounts. It’s crucial to understand that as a U.S. tax resident, your worldwide income is taxable in the U.S., and failure to report this income or provide required foreign information reporting can quickly escalate into criminal tax exposure and foreign information reporting penalties. In the best-case scenarios, even in cases of honest mistakes, non-compliance with these requirements often leads to hefty civil tax penalties.
Should I Consider Voluntary Disclosure for Offshore-Generating Income?
For those who have neglected to report taxable offshore income or failed to fulfill the required foreign information reporting, considering programs such as the delinquent foreign information reporting program, domestic or ex-pat streamlined voluntary disclosure program, or the government’s comprehensive offshore voluntary disclosure program might be a wise move. These programs are designed to minimize civil penalties and prevent criminal tax prosecution. However, engaging in these or any other penalty reduction strategies should never be done without thorough evaluation and guidance from an experienced dual-licensed Oxnard International Tax Attorney & CPA.
Get Back into Tax Compliance without Facing Criminal Tax Prosecution in Oxnard with our dual-licensed Voluntary Disclosure Attorneys and CPAs
Our Oxnard, CA Voluntary Disclosure Tax Attorneys + CPAs navigate the complexities of various federal and California state voluntary disclosures, including domestic, offshore, CDTFA (BOE), and FTB voluntary disclosures, streamlined procedures, and delinquent FBAR and international information return submission procedures. As long as a taxpayer who has willfully committed tax avoidance (potentially including non-filed foreign information returns coupled with affirmative evasion of U.S. income tax on offshore income) self-reports the federal or California state tax non-compliance through a domestic or offshore voluntary disclosure before the IRS or the California state agency 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.
Our team, led by David W. Klasing Esq. CPA M.S.-Tax is a fusion of experienced dual-licensed Tax Attorneys and CPAs who understand the intricacies of dealing with the IRS. With nearly 30 years of practice in tax law, David’s broad-ranging experience, leadership in prestigious positions, and continuous pursuit of advanced education have earned him recognition as a stalwart in Federal and California state tax law. Whether your concerns pertain to personal or business tax compliance, voluntary disclosure programs, or nuanced aspects of domestic and foreign tax laws, our award-winning tax professionals are here to provide tailored guidance. For a reduced rate initial consultation, contact us online here, or call our Oxnard tax office at (805) 617-4566 today.
Regaining Tax Compliance in California: Voluntary Disclosure Options
It is a fact that California is the sixth-largest economy in the world. Like the IRS, the State of California’s Franchise Tax Board (FTB) and the California Department of Tax and Fee Administration (CDTFA) provide a method for non-compliant taxpayers to regain compliant status by coming forward with the details of their failure to comply with the California state tax code. The path to voluntary disclosure to the FTB depends on whether you are an in-state or out-of-state filer. We are committed to assisting in making sincere, comprehensive, and timely disclosures to the IRS and California state tax authorities, which includes arranging for the payment of owed taxes, interest, and penalties and cooperating with the tax agencies to determine the correct tax liability.
Our dual-licensed Oxnard Voluntary Disclosure Attorneys and CPAs at Tax Law Offices of David W. Klasing offer full-service tax guidance for organizations and entities with California tax obligations. If you already have a relationship with a CPA in your company’s home state, we are happy to consult on the matter. We can provide California tax guidance to increase the likelihood that your California tax return or other tax filing is accepted without issue. Since our practice consists of Tax Lawyers, CPAs, and EAs, we take a comprehensive approach to business and tax law issues in California, in-state tax filings, and additional aspects of multi-state taxation. David Klasing is a dually certified Tax Lawyer and CPA who can provide insight and guidance regarding both the interpretation of tax laws and the accuracy of tax filings. To schedule a confidential reduced rate initial consultation, please call our Oxnard, California tax law offices at (805) 617-4566 or schedule online today. Click on the following to learn more:
- Income Tax (FTB)
- Excise Tax (CDFTA)
- Sales Tax (CDFTA)
- Franchise Tax (FTB)
- Payroll Tax (EDD)
- Use Tax (CDFTA)
Why Voluntary Disclosure is Crucial for U.S. Tax Compliance
In the United States, everyone is legally obliged to comply with all tax regulations. Our tax system hinges on the principle of “voluntary compliance.” In situations where there has been a lapse in meeting tax obligations, whether negligent or intentional, voluntary disclosure is a critical step toward rectifying the problem. Importantly, even if your disclosure isn’t perfect, promptly and proactively taking corrective steps can yield positive outcomes.
Through voluntary disclosure, eligible taxpayers in Oxnard can systematically address tax compliance issues, mitigating risks associated with eggshell audits, criminal tax investigations, and federal felony prosecutions. This process often reduces civil tax penalties, fosters a cooperative relationship with the IRS, and provides nearly guaranteed protection against criminal prosecution. Recent reforms introduce a preliminary acceptance process, reducing uncertainty and anxiety. Voluntary disclosure ensures comprehensive compliance with legal requirements, particularly for complex financial situations, while maintaining the confidentiality of disclosed information under tax privacy laws.
It’s imperative to emphasize that embarking on voluntary disclosure should always involve the guidance of an experienced criminal tax defense counsel and utilizing a Kovel Accountant. The expertise of a Kovel Accountant is particularly crucial for safeguarding constitutional rights, preserving attorney-client privilege, and protecting attorney work product. At the Tax Law Offices of David W. Klasing, our uniquely qualified and extensively experienced Criminal Tax Defense Tax Attorneys & Kovel CPAs provide a one-stop shop to efficiently achieve the optimal and predictable results that simultaneously protect your liberty and net worth. See our Testimonials to see what our clients have to say about us! Contact us at 805-617-4566 or schedule a reduced-rate initial consultation here at our Oxnard office or other convenient locations in Southern California.
Understanding the Statute of Limitations in IRS Voluntary Disclosure
To promote taxpayer compliance, even after instances of deliberate non-compliance, the IRS has established a policy that provides certain advantages to individuals who voluntarily disclose their past non-compliant activities. These benefits are extended to those who file accurate returns for the years still open under the criminal statute (typically six years), fully disclose their past acts or omissions of non-compliance, and either pay the total amount due or enter into an approved payment plan.
Note: A civil statute of limitations does not bind tax fraud and can be pursued indefinitely. In most cases, federal tax crimes can only be prosecuted within a six-year statute of limitations. However, any deceit related to a tax crime, such as providing false information to a federal agent regarding a past tax return, can constitute the last affirmative act of the crime, potentially making it actionable even after six years have passed. Any current misconduct can trigger a new six-year statute of limitations. Further, all tax returns are submitted under oath, so any misrepresentation could be considered perjury. Moreover, lying to a federal agent is a separate felony offense.
Should I Consider Amending a Tax Return or Making a Voluntary Disclosure of Unreported Income?
The potential consequences of filing amended tax returns should be carefully considered before filing. An amended tax return involves filing your taxes again, but with corrections to properly report all your income. However, this action can be construed by the IRS as a criminal admission of guilt or wrongdoing in certain circumstances. Filing amended tax returns without making a voluntary disclosure could open you up to criminal tax prosecution.
Amended tax returns are not advisable for taxpayers who willfully or intentionally did not report income or otherwise failed to file their taxes. An oversight on your taxes that was not deliberate may not result in any criminal tax prosecution. However, if your mistake was to avoid paying taxes intentionally, you may want to consider making a voluntary disclosure to avoid criminal tax penalties. The nature of your criminal prosecution will depend on many factors, including the amount of unreported income and whether you intended to avoid paying taxes or are only guilty of an oversight. The sooner you file an amended tax return, the better. If you wait too long, the government may question why you waited and become overly suspicious. As soon as you realize a mistake has been made, please don’t hesitate to contact our dual-licensed Oxnard Tax Fraud Defense Attorneys and CPAs at 805-617-4566 or schedule a reduced rate initial consultation directly here.
Contact Our Oxnard Office Today
At the Tax Law Offices of David W. Klasing, we will take immediate action to assess, then correct, your tax compliance record, negotiate/cooperate with the IRS and relevant California State Taxing Authority (where appropriate), and attempt to mitigate your criminal tax exposure in dealing with a standard civil audit, high-risk Eggshell and Reverse Eggshell Audits, or Criminal Tax Investigation. Contact us today to determine your best course of action to return to tax compliance and avoid facing criminal prosecution.
Our Oxnard Office is Conveniently Located at:
1000 Town Center Dr. Ste 300
Oxnard, CA 93036
Telephone: (805) 617-4566; 800-681-1295
