According to a Department of Justice press release, a New York pharmacist has pleaded guilty to conspiracy to distribute oxycodone, possession of oxycodone, and filing false business and personal income tax returns. This story highlights the importance of tax compliance and the dangers of knowingly filing a tax return with false information, which can lead to severe civil and criminal tax penalties. If you have fallen behind on your tax filings or have filed one or more false tax returns, it is crucial to contact an experienced tax lawyer as soon as possible in order to get back into compliance without facing criminal tax prosecution.
Defendant Underreported Income for Several Years
This is an update to a story that we brought you several years ago. If you recall, Daniel E. Russo, owner and operator of Russo’s Pharmacy, Inc. in Far Rockaway, Queens, admitted in court that he conspired with others to illegally distribute oxycodone, a controlled substance, between 2011 and 2014. Additionally, Russo filed false tax returns on behalf of his pharmacy for the years 2013 through 2016, which underreported the gross receipts and ordinary business income of the pharmacy. He also filed false personal tax returns from 2012 through 2016, underreporting the income he received from his business. As a result, Russo caused a tax loss of more than $415,000.
Russo now faces a maximum penalty of 20 years in prison for each count of conspiracy and possession with intent to distribute, and three years in prison for each count of filing a false tax return. He also faces a period of supervised release, restitution, monetary penalties, and forfeiture.
Working With an Experienced Tax Attorney to Come into Compliance
This case serves as a reminder of the importance of adhering to federal income tax laws, particularly correctly reporting your taxable income. Falling out of tax compliance can result in serious civil and criminal consequences, as demonstrated by Russo’s situation. Compliance is essential to avoid potential legal and financial repercussions, up to and including a federal prison sentence.
If you are not in tax compliance, whether due to failing to file a tax return for one or more years or taking a position on a tax return that could not be supported if pressed by the IRS, it is crucial to seek the assistance of an seasoned tax lawyer. Acting promptly can help mitigate potential civil and criminal penalties inherent in tax disputes with the IRS and the Department of Justice.
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 is an eggshell audit?
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- How are the 4 goals and outcomes 1 and 2 best obtained?
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- Is it my right to know why I was selected for examination?
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- What is an IRS civil examination?
- How IRS decides which tax returns are audited
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- What are my basic taxpayer rights if the IRS audits me?
- Options if I am unable to pay at the conclusion of audit
- 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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- Your rights during an IRS tax audit
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- Most common audit technique used by taxing authorities
- Don’t go into an IRS audit without representation
- Why hire an attorney to represent me in an audit?
- Why hire David W. Klasing to represent me in an audit
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
- How to defend a client charged with tax evasion
- Is it tax evasion if I didn’t file income tax return?
- Government says I attempted to evade my taxes. Now what?
- I forgot to pay my taxes or estimated tax. Is this a crime?
- Government proof I “willfully” failed to pay taxes
- 5 Ways to Respond to Tax Evasion Charges
- Being audited after using a tax professional
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- Requesting conference before investigative report is done
- Requesting conference after IRS Special Agent Report
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- Failure to keep records or supply information
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- Is it tax evasion if my W-4 contains false statements?
- IRC §7201 attempt to evade vs. common-law crime of attempt
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