Phoenix, Arizona’s vibrant capital, is celebrated for its balmy temperatures, distinctive desert vistas, and thriving economy. As one of America’s fastest-growing metropolitan hubs, Phoenix is a buzzing hive of economic activity, teeming with flourishing start-ups and established corporations. These enterprises power the city’s dynamic growth but necessitate adept navigation of the intricate federal tax landscape. Proper adherence to federal tax laws is paramount in this economic matrix, and any deviation could invite severe repercussions.
The Lifeline for Federal Voluntary Disclosures in Phoenix
Amid Phoenix’s scintillating economic growth, IRS Voluntary disclosure Practice emerges as a vital lifeline. Whether taxpayers have unintentionally overlooked their total federal tax compliance obligations or made deliberate omissions, overstatements, or understatements, voluntary disclosure practice presents an opportunity to rectify these missteps and soften the blow of civil potential penalties while removing the risk of criminal tax prosecution.
Navigating the Complex U.S. Tax Code
Deciphering the labyrinth of the Federal U.S. Tax Code is challenging, even for the most conscientious taxpayers in Phoenix. The complexity of the Code extends far beyond its primary provisions, often requiring a deep understanding of associated federal case law, IRS guidelines, and other authoritative sources to comprehend its implications fully. Despite the expert advice of tax professionals, the ultimate responsibility for any willful inaccuracies or omissions in tax filings, potentially leading to civil or criminal tax liabilities, rests with the taxpayer.
Introducing the Tax Law Office of David W. Klasing in Phoenix Arizona
The Tax Law Office of David W. Klasing, a boutique tax law firm, is thrilled to announce the opening of a new satellite office in Phoenix. Our award-winning, nationally recognized team of dual-licensed Tax Attorneys and CPAs brings over 30 years of collective experience in tax and business law. With a diverse professional background, we are well-positioned to assist individuals and businesses with even the most intricate federal tax issues.
In the thriving economic landscape of Phoenix, we understand the anxieties taxpayers may face when dealing with federal agencies such as the IRS. That’s why we prioritize open and consistent communication with our clients. Our expertise in navigating the federal nuances of the IRS Voluntary Disclosure Practice empowers us to assist businesses nationwide, even those in Phoenix, in leveraging its benefits—even in situations where it might seem impossible.
We are committed to guiding you towards substantial federal tax compliance, promptly addressing disclosure requirements to reduce your risk exposure, and assuring you are in good standing with federal tax authorities. However, please note that while our services extend to federal tax assistance for Phoenix-based clients, our legal practice outside California is limited to federal cases only. For any personal or business-related questions about IRS tax compliance and voluntary disclosure programs, Call 800-681-1295 or complete our form now.
Navigating Voluntary Disclosure: IRS VDP and DOJ Collaboration
Understanding the IRS Voluntary Disclosure Practice
The IRS Voluntary Disclosure Practice (VDP) offers a viable path for taxpayers who have previously deliberately failed to comply with federal tax laws, allowing them to correct their past mistakes without facing criminal tax prosecution. The IRS considers timely, accurate, and comprehensive voluntary disclosures when determining whether or not to recommend criminal prosecution for tax violations.
Making a voluntary disclosure to the IRS involves providing truthful, complete, and appropriate information about past tax non-compliance. It’s important to note that this process involves more than confessing past mistakes. Taxpayers must also:
- Arrange to pay in good faith the federal tax, interest, and any applicable penalties owed;
- Cooperate with the IRS to determine the accurate federal tax liability.
For a voluntary disclosure to be considered timely, it must be made before:
- The IRS initiates a civil audit or criminal tax investigation;
- The IRS learns about tax non-compliance from a third party, such as an informant, another governmental agency, or through a John Doe summons;
- The IRS acquires information relevant to the non-compliance through a criminal tax enforcement action, like a search warrant or grand jury subpoena.
Note:
As long as a taxpayer that 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 tax non-compliance 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.
Adapting to the DOJ’s Corporate Voluntary Self-Disclosure Policy
Beyond the IRS’s Voluntary Disclosure Practice, taxpayers and are wise to be informed about the Department of Justice (DOJ) Tax Division’s Corporate Voluntary Self-Disclosure Policy. The policy applies to various business organizations, excluding sole proprietorships. Despite this exclusion, sole proprietors, functioning as individuals rather than separate entities, can still voluntarily disclose tax compliance issues through the IRS’s VDP.
A Collaborative Approach to Tax Compliance
While the updated DOJ Tax Division’s policy suggests that voluntary self-disclosures related to internal revenue laws must be made to the DOJ’s Tax Division, it’s essential to understand that disclosures made to the IRS under its Voluntary Disclosure Practice are still considered. This arrangement enables the DOJ and IRS to decide collaboratively which agency will take the lead in ensuring tax compliance.
The updated policy underscores the importance of timely disclosures and cooperation, even if taxpayers suspect the government might already be aware of their non-compliance. Although full benefits of voluntary self-disclosure might not be available in these situations, taxpayers can still obtain reduced penalties, avoid criminal tax prosecution, and minimize reputational damage.
Turning the Tide on Non-compliance with The Tax Law Office of David W. Klasing
If you’re a taxpayer facing the fear and anxiety of potential criminal prosecution due to intentional federal tax non-compliance, remember that you have options if you act proactively and cautiously. We aim to guide you in resolving these issues before they escalate to a criminal level. With the help of our dual-licensed Tax Attorneys and CPAs, you can voluntarily “declare” previous undiscovered federal tax fraud or non-compliance issues and strike a deal with the IRS that promises amnesty and reduced civil penalties. This agreement typically results in the IRS refraining from criminal tax prosecution for past fraudulent or non-compliant filings, provided you voluntarily report and correct your tax returns from the past six years. At the Tax Law Office of David W. Klasing, we are committed to guiding you through this process, ensuring a more secure and compliant financial future.
Types of Voluntary Disclosure: Navigating the Path to Compliance
When it comes to tax compliance, navigating the labyrinth of federal tax laws can seem intimidating, particularly when faced with non-compliance issues. Fortunately, several voluntary disclosure avenues are available to guide taxpayers back into alignment with federal tax laws. Recognizing the correct type of voluntary disclosure for your circumstances is crucial.
Domestic Voluntary Disclosure: Navigating Local Tax Waters
Phoenix taxpayers facing undisclosed income, deductions, credits, or liabilities associated with domestic sources have the option of Domestic Voluntary Disclosure. This method calls for collaboration with the IRS to amend six years of past federal tax oversights.
Quiet Disclosure: A Subtle Path An unofficial route, Quiet Disclosure, involves the taxpayer amending and re-submitting their returns. While this process includes settling any due taxes, accrued interest, and self-assessed penalties, it doesn’t offer immunity / amnesty from potential severe penalties, including criminal tax charges, if the IRS identifies willful misconduct. Our dual-licensed Attorneys and CPAs generally advise this course of action only when the inaccuracies on your return are minor and unintentional because the amended returns themselves can be viewed as a criminal tax admission.
Noisy Disclosure: A Comprehensive Course In more complex or delicate federal tax cases, our team might suggest a “Noisy Disclosure.” This method is recommended when a substantial amount of additional tax is due, a risk of disqualification exists, or an explicit assurance from the IRS is desired.
A noisy disclosure typically involves filing Form 14457 or the Voluntary Disclosure Practice Preclearance Request and Application. The initial step requires taxpayers to provide basic information about their non-compliance. If the IRS grants preclearance, taxpayers proceed to complete a detailed Voluntary Disclosure, which demands a narrative account of non-compliance and the disclosure of any professional advisors involved.
Streamlined Domestic Offshore Procedures: Simplifying Domestic Foreign Assets
Designed explicitly for U.S. taxpayers residing within the U.S., the Streamlined Domestic Offshore Procedures provide an avenue to correct non-compliance regarding foreign financial assets. This program offers a way to rectify these discrepancies while potentially reducing penalties.
Streamlined Foreign Offshore Procedures: Assisting Non-Resident U.S. Taxpayers (Expats)
The IRS offers the Streamlined Foreign Offshore Procedures for U.S. taxpayers living abroad. This program helps correct non-compliance related to foreign assets, offering favorable terms that may eliminate penalties.
Delinquent International Information Return Submission Procedures: Filling the Information Gap
If you’ve failed to report certain international tax information but owe no additional tax, you may qualify for Delinquent International Information Return Submission Procedures. This pathway allows taxpayers to meet their information reporting obligations without facing penalties.
Delinquent FBAR Submission Procedures: Settling Unfiled Reports
For taxpayers who have not received a contact from the IRS regarding delinquent Foreign Bank and Financial Accounts Reports (FBARs) and are not currently under IRS civil examination or criminal tax investigation, the Delinquent FBAR Submission Procedures offer an avenue to correct their non-compliance.
Your Path to Compliance: Partner with the Tax Law Offices of David W. Klasing
The complexities of tax compliance and voluntary disclosures necessitate an expert guide. An experienced and reputable dual-licensed Tax Attorney and CPA is not just helpful but essential. An attorney safeguards your interests under the Attorney-Client Privilege and Work Product Privileges. This protection prevents your representative from being compelled to testify against you, especially if they did not prepare the returns that need to be amended. Additionally, only an attorney can legally initiate a noisy voluntary disclosure, thereby avoiding the unauthorized practice of law—a crime in itself. Our seasoned dual-licensed Attorneys and CPAs fully grasp the potential risks and rewards of voluntary disclosures. We ensure optimal protection even if you’re ineligible for voluntary disclosure.
How can the Tax Law Offices of David W. Klasing Help?
At the Tax Law Offices of David W. Klasing, we understand that each case is unique. Whether you’re facing challenges with quiet disclosures, noisy disclosures, streamlined procedures, or dealing with delinquent FBARs or international information returns, our team stands ready to offer comprehensive guidance and devise effective strategies tailored to your specific circumstances. We are committed to demystifying the process, identifying opportunities to mitigate your situation, and handling each step toward full compliance.
If a taxpayer who has unintentionally overlooked federal tax responsibilities—including non-filed domestic or international income tax and information returns coupled with affirmative evasion of payment—discloses these oversights through a domestic or offshore voluntary disclosure before the IRS initiates an audit or criminal tax investigation, it is possible to be successfully brought back into tax compliance without facing criminal tax prosecution. This preemptive move nearly guarantees immunity from criminal tax prosecution and often also provides a break on the civil penalties that would otherwise apply if the terms of the program are strictly complied with. Our team is indispensable in steering individuals and businesses through the complexities of addressing these issues ensuring a secure and compliant financial future.
Our team comprises uniquely qualified and extensively experienced Criminal Tax Defense Tax Attorneys & Kovel CPAs. We provide a comprehensive solution that protects your liberty and net worth while efficiently achieving optimal and predictable outcomes. Our client testimonials are evidence of our commitment to assisting clients through the maze of tax compliance.
How Convenient are the Scheduling and Travel Arrangements?
We value your time and aim to provide services as accessible and flexible as possible. David W. Klasing, an instrument-rated private pilot, and travels to client meetings using his Cirrus SR22, eliminating additional travel expenses. We also offer a half-day scheduling option, where David W. Klasing will personally visit any of our satellite offices without charging extra for travel.
Reaching out to us is straightforward. Complete our contact form, and we will respond promptly. If you encounter difficulties during the online booking, please call our office immediately at (800) 681-1295.
Here is a link to our YouTube channel: click here!
![David Klasing's Plane](https://klasing-associates.com/wp-content/uploads/2023/06/Aerista-N711QT-pix-0052.jpeg)
![David Klasing's Phoenix office](https://klasing-associates.com/wp-content/uploads/2023/07/klasing-phoenix-office.jpg)
More Commonly Asked Tax Audit Questions
- How should Tax Audits be Handled by Criminal Tax Counsel?
- How to survive audit when I cheated on return being audited
- What is an eggshell audit?
- What is a reverse egg shell audit?
- Why is a reverse egg shell audit dangerous for a taxpayer?
- Warning signs of a criminal referral from an IRS audit
- Effective tax defense counsels goals in an egg shell audit?
- How are the 4 goals and outcomes 1 and 2 best obtained?
- What are the possible outcomes of an egg shell audit?
- Is it my right to know why I was selected for examination?
- What can I do to prepare for an audit?
- What is an IRS civil examination?
- How IRS decides which tax returns are audited
- What are my appeal options if I disagree with IRS?
- 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
- What is involved with appealing disagreements?
- Rights to disagree with IRS tax auditor’s findings
- Can I stop the IRS from repeatedly auditing me?
- Can I have the examination transferred to another area?
- Can I record my IRS interview and is it a good idea?
- How many years of returns are at risk during an audit?
- Common reasons for the IRS to conduct a tax audit
- How to avoid negative consequences from an IRS interview
- Have to agree to interview by taxing authority directly?
- Are all audits the same?
- What should I do if the IRS is investigating me?
- What if I don’t respond to a taxing authority audit notice
- Your rights during an IRS tax audit
- Risks of attending an IRS audit without a tax lawyer
- 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
- Rules for what an IRS agent can do while investigating me
- How tax preparers, attorneys and accountants are punished
- How the IRS selects tax crime lead for investigation
- How does the IRS prosecute suspected tax crimes?
- Does IRS reward informant leads for suspected tax crimes?
- How the government proves deficiency in a tax evasion case
- Do prior tax crimes factor into new IRS tax convictions?
- Requesting conference before investigative report is done
- Requesting conference after IRS Special Agent Report
- What are my rights during an IRS criminal investigation?
- Avoid prosecution for tax crime with voluntary disclosure?
- Defense tactics that make it hard for to prove willfulness
- How a tax attorney can stop your criminal tax case?
- What can you generally tell me about tax crimes?
- Continuing filing requirement with investigation pending
- Federal criminal code crimes that apply to tax issues
- Penalty for making, subscribing, and filing a false return
- CID special agent’s report for criminal prosecution
- What is the discovery process in a criminal tax case?
- What the IRS includes in indictment for tax case
- What is the hardest element of a tax crime to prove?
- IRS methods of gathering evidence to prove tax crime
- What does a grand jury do in IRS tax crime prosecution?
- Failure to keep records or supply information
- Failure to make a return, supply information, or pay tax
- What is attempting to evade payment of taxes?
- What is income tax evasion and how is it punished?
- What is attempted income tax evasion?
- What is the crime of failure to pay tax? What is punishment
- Crime of making or subscribing false return or document
- Criminal Investigation Division investigation tactics
- Tax crimes related to employment tax forms and trust funds
- Tactics to defend or mitigate IRS criminal tax charges
- How the IRS generates leads about suspected tax crimes
- What is the crime” evasion of assessment” of tax?
- Specific examples of “attempting” to evade tax assessment
- What is the so-called Spies evasion doctrine?
- Does overstating deductions constitute tax evasion?
- Is it tax evasion if my W-4 contains false statements?
- IRC §7201 attempt to evade vs. common-law crime of attempt
- What are the penalties for Spies tax evasion?
- How government proves a taxpayer attempted tax fraud
- What is a tax that was “due and owing.”
- What is evasion of assessment for tax liability?
- Is evasion of assessment different from evasion of payment
- Does the IRS have a dollar threshold for tax fraud?
- What is the IRS burden of proof for tax fraud convictions?
- Are Tax Laws Constitutional?
- What is the source of law that defines tax evasion?
- Does section 7201 create two distinct criminal offenses?
- Does tax evasion definition include partnership LLC
- What if I helped someone else evade taxes?
- Is it illegal to overstate deductions on my tax return?
- Is it illegal to conceal bank accounts from the IRS?
- Do later losses justify prior deductions?
- Common reasons the IRS and DOJ start investigations
- What is the Mens Rea component of tax crimes?
- What is a proffer agreement and what are the risks?
- Why to have an attorney to review a proffer agreement
- Why enter into a proffer agreement?
- Limited use immunity from proffer agreements
- Difference between civil and criminal fraud allegation
Questions About Delinquent Payroll Taxes and Trust Fund Recovery Penalty
- What happens if an employer continues to incur new payroll tax liabilities?
- California Employment Taxes Basics
- How Does the IRS Develop an Employment Tax Fraud Case from the First Indication of Fraud to a Criminal Indictment?
- Can more than one person be considered responsible by IRS
- How unpaid employment tax payments are allocated
- When a corporate officer is considered a responsible party
- Examples of trust fund recovery penalty determinations
- Failing to pay employment taxes after notice is given
- How to determine responsible person for trust fund recovery
- Assessing trust fund recovery penalty and option to appeal
- What is the trust fund recovery penalty?
- What are the penalties for failure to pay employment taxes
- When am I considered liable for company’s employment taxes