Philadelphia Man Pleads Guilty to Tax Fraud and Commercial Bribery Offenses

On February 3, 2023, Danny Sing, a 59-year-old resident of Philadelphia, PA, pleaded guilty to various federal tax offenses and commercial bribery. For his tax crimes, the culprit is facing five years of imprisonment, a subsequent term of supervised release, and a fine.

Sing and his coconspirators paid themselves and their employees in cash so that they could hide the wages from the Internal Revenue Service (IRS). Also, all of the checks sent from clients to their company were cashed so that their income could be concealed. It has been determined that nearly $3 million worth of federal employment taxes and federal income taxes were evaded between 2013 and 2020.

If you are at risk of being charged with tax crimes, our Dual Licensed Tax Attorneys and CPAs can help fight to reduce the additional tax, penalties, and interest that you may face, and we have a long track record of assisting our client’s in avoiding criminal tax prosecution. Contact the Tax Law Offices of David W. Klasing by calling (800) 681-1295.

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, Kovel CPAs 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!

Owner of Pennsylvania Staffing Company Pleads Guilty to Tax Offenses

Danny Sing, along with multiple other individuals, owned and operated a staffing company in Pennsylvania called Global Staffing Services, Inc. The company provided temporary employees for a manufacturing business in the northeast region of the state. However, Sing and his coconspirators paid themselves and their employees in cash so that they could conceal the wages from the Internal Revenue Service (IRS). Furthermore, they quickly cashed all of the checks they received from Global Staffing’s clients so that their income could also be hidden.

Between 2013 and 2020, Sing and his accomplices evaded their federal income tax obligations on nearly $1,600,000 in personal wages paid by their staffing company. Furthermore, they withheld nearly $1,360,000 in federal employment taxes from the IRS.

For his crimes, Sing may spend up to 5 years in prison and will have to pay a significant fine. Additionally, immediately following his prison term, he may have to undergo a term of supervised release.

Criminal penalties for tax crimes can be imposed in cases where taxpayers willfully neglected or evaded their tax obligations. You should attempt to avoid committing any tax crimes whatsoever. Still, if you have encountered an issue with the IRS regarding your tax obligations, you can call our law firm for help with your case. Our Dual Licensed Tax Attorneys and CPAs can provide the support you need.

Examples of Employment Tax Scams

There are many ways that companies’ owners may seek to avoid their federal employment tax obligations. The following are all examples of employment tax scams:

This was the employment tax scam utilized by Danny Sing and his coconspirators. When employers pay their workers’ wages in cash, they can more easily evade their employment tax responsibilities

Another form of employment tax scam occurs when companies’ owners file fraudulent payroll tax returns. Furthermore, some employers may try to escape their tax obligations by simply not filing their returns at all.

However, mistakes can be made easily on employment and income tax returns. In some cases, taxpayers are falsely accused of attempting to mislead the Internal Revenue Service (IRS). If you have been accused of filing false tax returns, you should call our Dual Licensed Tax Attorneys and CPAs right away. Our team can help assess your case and determine the appropriate course of action.

Pyramiding is an employment tax scam that refers to situations where employers withhold employment taxes but fail to pay them to the IRS. This scam is often perpetrated by unreliable contractors who set up businesses such as employment agencies.

For example, an individual may quickly establish a company and do business for a short period of time. During this period, they will withhold employment taxes from their employees’ wages with no intention of paying those taxes to the IRS. When the time is right, the tax evader will shut down their business, declare bankruptcy, and leave town.

Another way that employers can evade their employment tax obligations is by intentionally misclassifying their employees. For example, a business may suggest that their employees are actually independent contractors. In doing so, that business would avoid having to pay employment taxes.

How to Protect Yourself from Being Charged with Employment Tax Fraud

There are certain practices you can utilize that will protect you from issues related to employment tax fraud. Taking the following actions could help prevent a dispute with the Internal Revenue Service (IRS):

You should clearly classify your employees during onboarding processes. Misclassifying employees as contractors is a clear red flag for the IRS. Whether you personally onboard your employees or use a service to do so, you must be able to defend any classification that is made. California has made classifying works as independent contractors very risky and thus counter recommended.

Furthermore, you should be sure to maintain accurate and organized financial records. Payroll accounting can be a complex task. You should ensure that you hire employees that have the necessary training and expertise to do the job. Simply put, you have to be able to trust the people making your records and handling your money. Better yet, hire either ADP or Paychecks to keep you in compliance.

You can also use a digital time-keeping system to protect yourself from being charged with employment tax fraud. These systems help prevent employees and finance personnel from padding hours. Also, you should choose a payroll accounting system that can track suspicious or inconsistent activity.

Can You Go to Prison for Employment Tax Evasion?

In some cases, people can go to prison for purposely evading their employment taxes. The main consideration when determining how much jail time perpetrators will serve is the amount of employment tax loss, they caused the government. Those who have been charged with payroll tax evasion can reach out to our experienced Dual Licensed Tax Attorneys and CPAs for help with their cases.

If You are at Risk Charged with Employment and Income Tax Crimes, Our Law Firm Can Help

If you at risk of being charged with tax crimes, seek assistance from our Dual Licensed Tax Attorneys and CPAs by calling the Tax Law Offices of David W. Klasing at (800) 681-1295.