As an update to a story that we brought you earlier this year, a federal judge has sentenced a Former IRS attorney to federal prison after he was convicted of tax evasion and obstructing the administration of internal revenue laws. This follow-up and the underlying story is a reminder that the IRS and Department of Justice will go after any taxpayer, including their own, to ensure that tax laws are enforced.
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According to a Department of Justice press release, Craig Orrock was sentenced to serve 32 months in a federal prison related to his conviction. As we explained in our story earlier this year, starting in the early 1990s, Orrock evaded the payment of his federal income taxes and obstructed IRS efforts to collect the taxes that he owed. Although Orrock filed correct federal individual income tax returns for the years 1993 through 2015, he failed to pay the income taxes that he himself reported as due.
In an attempt to prevent the IRS from collecting the reported income taxes Orrock used nominee entities, bank accounts and trusts to hide his income and assets from the IRS. Additionally, Orrock attempted to evade the assessment of a large part of the income tax he owed for 2007 by hiding from the IRS the true ownership of a stake in real estate interest he held and the gain associated with disposing of such property. Government prosecutors, along with the IRS, estimated that between 1993 and 2015, Orrock evaded the payment of over $500,000 in federal income taxes.
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In addition to Orrock’s prison sentence, he was ordered to serve three years of supervised release upon the ending of his physical incarceration. Additionally, he was ordered to pay over $923,000 in restitution to the IRS, representing the lost tax revenue as a result of his criminal tax activity.
As we mentioned earlier, this story illustrates the notion that the IRS and Department of Justice will do anything to ensure that federal tax laws are followed, including prosecuting and locking up one of their own. If you have received notice from the IRS that your tax return is under examination or if you have failed to file your taxes, it is in your best interest to contact an experienced tax defense attorney as soon as possible.
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The tax and accounting professionals at the Tax Law Offices of David W. Klasing have extensive experience representing taxpayers from all walks of life. Whether you are a business owner facing a sales and use tax audit or you have received notice that your individual return is being examined, our team of zealous advocates are standing by to help you develop a sound legal strategy that will keep your personal and financial interests at the forefront of importance. Do not lose sleep over the possibility of tax evasion or other tax-related charges from the IRS or state taxing authorities. Contact the Tax Law Offices of David W. Klasing today for a reduced-rate consultation.
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