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According to a Department of Justice press release, a Pennsylvania man was recently sentenced after being convicted of tax evasion. This story should serve as a reminder to those taxpayers who have intentionally under-reported income that the IRS has methods of detecting un- or under-reported income and has not hesitated in using it against taxpayers, leading to criminal tax charges. If you have failed to file a tax return for one or more years or have been untruthful about your items of income, deductions, or credits, it is in your best interest to contact an experienced tax defense attorney to determine the best next steps to get right with the government.
Court records reveal that Christopher Jones, 54, of Old Forge, Pennsylvania, was sentenced to serve three years of probation after being convicted of tax evasion. Federal prosecutors built a case around Jones after the IRS discovered that, between 2014 and 2019, Jones failed to report over $500,000 of income, causing an underpayment of tax of more than $100,000.
The Department of Justice and the IRS uncovered evidence that Jones was earning a substantial profit on illegal bookmaking activities. Nonetheless, the income from those activities was not being captured on Jones’ annual tax return, as required by law. At his sentencing hearing, the judge indicated that, but for Jones’ severe medical conditions and those COVID-19 risks associated therewith, he would have been sentenced to time in a federal prison. Jones was also ordered to pay $117,370 in the form of restitution to the IRS, representing the amount of tax loss his illegal activity caused.
U.S. taxpayers are required to report income on their annual tax returns, “from whatever source derived”, which means that if you earn money in cash or illegally, it nonetheless must be reported for tax purposes. But aside from affirming that even ill-gotten income must be reported on your tax return, this story stands for the truth that the IRS has techniques of determining whether items of income or deduction tell a complete and truthful story. If not, an IRS agent may inquire further. If certain badges of fraud are identified, the case may be handed over to IRS Criminal Investigations and end up with the Department of Justice.
If you have failed to report all of your income on your tax return or have failed to file a tax return for one or more years, you should consider seeking the assistance of an experienced tax defense attorney. Together, you and your seasoned tax lawyer can establish the pertinent facts of your case and develop a strategy to efficiently come into tax compliance. The IRS recently hired hundreds of new revenue agents to lead tax audits. It is about time you add your own valuable resource to help ensure that your physical and financial freedoms are maintained.
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 disclosurebefore 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!
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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