We represent clients from all U.S. and International locations regarding Federal Tax and California Issues.
According to various news outlets, Paul E. Jondle, 61, was sentenced to spend a year and a day in a federal prison, last week. Jondle was the target of an IRS Criminal Investigation Division probe that uncovered his illegal activity. According to prosecutors, Jondle was able to temporaily dupe the Internal Revenue Service into believing that he had not received any taxable income for five years, when in actuality, he had banked millions by taking advantage of his employees.
Jondle owned and operated Future Health in Malden, Massachusetts. Because he was barred from practicing chiropractic medicine, he hired subcontractors to come into the office and provide services to customers. When patient’s insurance company paid for a portion of the services rendered at Future Health, tax documents would be generated and sent to those who earned the income. Because Jondle paid subcontracting chiropractors a portion of the insurance fee, the income should have been attributed to him first, and he would be responsible for reporting to the IRS how much he paid his staff. Instead, Jondle lied on insurance documents, causing insurance companies to attribute all of the insurance proceeds to the various chiropractors that rendered services at Future Health. This illegal action resulted in the IRS being informed that Jondle had made no money and that the subcontracted chiropractors made much more than they actually received.
The IRS estimates that Jondle failed to report over $3 million over five years. Court documents show that Jondle spent his earnings on mortgage payments, lavish landscaping, luxury pet hotels, and tuition. Things could have been a lot worse for Jondle as the maximum penalty for tax evasion is five years in prison per count. Although he was able to escape nearly four years of potential prison time, the financial impact of his punishment will last far beyond his time behind bars.
As evidenced by the above case, being investigated, prosecuted, and convicted of tax evasion or tax fraud is no joke. The IRS Criminal Investigation Division is a specialized group of investigators who is well trained at sniffing out tax crimes. During an examination, one wrong move by a taxpayer may result in the revenue agent referring the case to the Criminal Investigation Division. There, agents will take a deeper look into the taxpayer’s situation and determine whether any laws were broken. Finally, if appropriate, the case will be handed off to the Department of Justice for criminal prosecution. As each stage passes, it becomes increasingly difficult to mitigate the negative consequences of committing a tax crime.
One of the most common mistakes a taxpayer can make is deciding to defend themselves by going up against the IRS or the Department of Justice alone. As mentioned earlier, the IRS and DOJ agents that you will encounter are highly trained and can spot a taxpayer’s tall tale or cover up from a mile away. Only an experienced tax attorney can attend each and every meeting with the government to ensure that no additional damage is done. Furthermore, only an attorney is has been trained to protect your Constitutional rights.
The tax and accounting professionals at the Tax Law Offices of David W. Klasing have extensive experience in representing taxpayers in a plethora of tax situations. From individuals who are under examination to business owners who are being investigated, our team of zealous advocates is ready to ensure that you have the best opportunity of walking away from a potentially devastating situation with as little damage possible. Don’t be kept up at night by the thought of spending time in a federal prison for committing a tax crime. When the IRS or Department of Justice comes knocking, allow our experienced tax attorneys and tax accountants meet them at the door. Contact the Tax Law Offices of David W. Klasing today for a reduced-rate consultation.