According to a Department of Justice press release, a federal grand jury in Philadelphia recently returned an indictment charging a Pennsylvania businessman with multiple counts of wire fraud, mail fraud, and tax evasion. This incident sheds light on the potentially severe repercussions stemming from committing criminal tax offenses. 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 examination, it is in your best interest to contact an experienced tax defense attorney to discuss your options to come into compliance without facing criminal tax prosecution.
Defendant Accused of Leaving Large Amounts of Income Off Tax Return
According to court records, between approximately 2016 to 2018, John Griffin of Philadelphia, the principal and founder of Second Story Farming, Inc., is alleged to have misrepresented critical business facts. Griffin is accused of promising two entities the equipment necessary for the establishment of indoor vertical farms. It’s alleged that the entities paid Griffin $760,000 in total for the equipment, however, Griffin allegedly used only a portion of the funds for equipment procurement. The remaining amount was allegedly funneled into Griffin’s own business and used to cover his personal expenses.
The indictment further alleges that between 2016 and 2018, Griffin received at least $420,000 in gross income from his work with Second Story Farming, none of which was reported on his federal tax returns. Furthermore, Griffin has allegedly not filed a personal tax return since at least 2014. Griffin is accused of attempting to evade his income taxes by making personal withdrawals from business bank accounts and transferring funds from business bank accounts to his wife and entities under his control.
Understanding the Need for an Experienced Tax Attorney
The serious charges leveled against Griffin underline the necessity of obtaining advice from seasoned legal representation when faced with potential IRS or Department of Justice controversy. Failing to file a tax return or filing a false tax return can lead to significant legal repercussions, including hefty fines and long-term imprisonment.
If you have failed to comply with federal or state tax laws, it is in your best interest to contact an experienced tax attorney today. Together, you will work to determine the pertinent facts of your case and establish a roadmap to come back into tax compliance while keeping your physical and financial freedom top of mind.
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.
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More Commonly Asked Tax Audit Questions
- How should Tax Audits be Handled by Criminal Tax Counsel?
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- What a 30 or 90-Day Letter from the IRS means
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- Rights to disagree with IRStaxauditor’sss findings
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- How many years of returns are at risk during an audit?
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- Have to agree to interview by taxing authority directly?
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Questions and Answers for Criminal Tax Representation
- When tax defense counsel parallels tax crime investigation
- Guilty of tax obstruction by backdating documents?
- To be found guilty of tax obstruction must a person actually be successful in impeding the IRS’s functions?
- Help! The Document I Gave the IRS Had False Information
- Tax crime aiding or assisting false return IRC §7206(2)
- What is the crime known as tax obstruction § 7212?
- What is the difference between tax perjury and tax evasion?
- What is the tax crime commonly known as tax perjury?
- What is a Klein Conspiracy?
- Increased possibility of civil action in IRS investigation
- Am I Guilty of Tax Evasion if the Law is Vague?
- What happens if the IRS thinks I committed tax crimes?
- What are ways to defend against a tax evasion charge?
- Difference between criminal tax evasion and civil tax fraud
- What accounting method does the IRS use for tax fraud
- Can I Change Accounting Method to the Accrual Method
- What is the willfulness requirement for tax evasion?
- I didn’t know I committed tax fraud. Can I get off?
- Concealed assets from IRS. Can I avoid tax evasion charges
- How government proves I willfully engaged in tax evasion
- What is the venue or court where a tax crime case is heard?
- Must the IRS prove tax crimes beyond a reasonable doubt?
- Is it a crime to make false statements to the IRS?
- Will the IRS overlook my tax evasion if it’s minor?
- Failed to tell IRS about my nominee account
- Audit risk with cash based business transactions
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- Is it tax evasion if I didn’t file income tax return?
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