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As we have previously reported, the IRS and Department of Justice have reduced the number of new examinations and criminal investigations related to tax matters in the wake of the COVID-19 pandemic. Nonetheless, there are still tax cases making their way through the system. One such case involves a Rhode Island chiropractor who pleaded guilty to tax evasion earlier this year and was sentenced last week. Although the government may be experiencing a slow-down in new examinations and criminal investigations, the IRS and Department of Justice will soon be back at it. If you have failed to file a tax return for one or more years or if you have taken a position on a tax return that cannot be substantiated if pressed for evidence, it is in your best interest to contact an experienced tax attorney to discuss your options to come into compliance.
Note: As long as a taxpayer that has willfully committed tax crimes (potentially including non-filed returns coupled with affirmative evasion of payment) 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 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!
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According to a Department of Justice press release, Leonard Marino, 51, of Johnston, Rhode Island, was sentenced to serve three years of probation. Marino’s sentencing comes after his guilty plea on tax evasion charges related to Marino’s chiropractic business, Chiropractic Associates.
Most of Marino’s work came as referrals from law firms as a part of personal injury cases. When issued checks by the law firms, Marino would take various steps to avoid depositing the funds into the Chiropractic Associates bank account. Rather, Marino diverted the funds into his own pocket, paying for visits to strip clubs and other lavish expenses. The funds that Marino diverted away from the business were not included in the gross income of either Chiropractic Associates or his own.
The Department of Justice and the IRS estimate that Marino caused a total tax loss of more than $1,061,000 between 2016 and 2018. The first year of Marino’s three years of probation is to be served as home confinement with monitoring. Additionally, Marino was ordered to pay interest and penalties to the IRS. Prior to sentencing, the entire amount of back taxes had been repaid to the IRS.
Marino’s sentence is a clear indication that the COVID-19 pandemic is affecting criminal tax prosecutions. In cases with a tax loss of more than $1 million, it is extremely uncommon to see a defendant receive a probation-only sentence. As we move forward toward normalcy, we will likely see that sentencing reverts back to its pre-COVID-19 status. Though, because the IRS and Department of Justice have suspended most new examinations and investigations, this is an opportune time for a taxpayer to come forward if he or she is out of tax compliance.
Working with an experienced tax attorney, you will lay out the facts of your particular case. There are many avenues that a taxpayer and their attorney may take to reach the compliance destination, but there are unique variables that can dictate the most appropriate route. Once the best method to come into compliance has been determined, your tax attorney will represent you with every interaction with the IRS or state taxing authority until your situation is fully resolved.
Regardless of your particular business or individual tax 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.
In addition to our main office in Irvine, the Tax Law Offices of David W. Klasing has unstaffed (conference room only) satellite offices in Los Angeles, San Bernardino, Santa Barbara, Panorama City, Oxnard, San Diego, Bakersfield, San Jose, San Francisco, Oakland, Carlsbad and Sacramento. During the COVID-19 pandemic, our staff are working from home, but have full virtual meeting capability.
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