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The Law Offices of David W. Klasing
In the vibrant coastal expanse of Miami, it’s not just the sandy beaches where you’re required to play by the rules. The Internal Revenue Service (IRS) expects the same level of commitment from every taxpayer in the city regarding adherence to federal tax laws. Whether taxpayers have unintentionally overlooked their total federal tax compliance obligations or made deliberate omissions in overstatements or understatements, voluntary disclosure practice presents an opportunity to rectify these missteps and soften the blow of potential civil tax penalties while removing the risk of criminal tax prosecution in what amounts to an Amnesty Program.
The United States has established numerous agreements with global jurisdictions, enhancing data sharing and international cooperation. This amplified interconnectivity has escalated the likelihood of the IRS detecting offshore intentional/deliberate tax non-compliance, even if previously unnoticed. This expansive international information-sharing network emphasizes the urgency of proactive tax management for Miami taxpayers. If you’re facing the narrowing opportunity for voluntary disclosure—whether due to undisclosed foreign accounts, offshore assets producing unreported taxable income, or other federal tax oversights—it’s crucial to act swiftly and thoroughly. It isn’t just about adhering to the law; it’s a strategic move to minimize the risk of criminal tax prosecution and financial penalties.
Known for its azure Atlantic waters and bustling nightlife, Miami operates under the same federal tax laws as the rest of the nation. These tax laws operate on a “voluntary compliance” principle. Failing to comply voluntarily can open you up to severe civil and even criminal tax consequences from the IRS, including fines, penalties, criminal tax prosecution, restitution, and other punitive measures. However, even in South Florida’s heart, a lifeline is available for taxpayers. Suppose a Miami taxpayer has willfully committed tax fraud, such as not filing foreign information returns or intentionally evading U.S. income tax on offshore income. In that case, the route to absolution is possible through a domestic or offshore voluntary disclosure. By self-reporting these discrepancies before the IRS launches an audit or criminal tax investigation, there’s a nearly guaranteed opportunity to return to tax compliance without criminal tax prosecution. This approach not only averts potential criminal tax prosecution but also often results in reduced civil penalties.
Understanding Domestic and Offshore Voluntary Disclosure
In the intricate landscape of U.S. tax compliance, taxpayers who suspect they’ve intentionally committed federal tax crimes face a crossroads with three potential paths. The first, albeit risky, is to maintain the status quo, hoping the IRS doesn’t detect the discrepancies. This approach, however, carries the looming threat of criminal tax penalties, including substantial fines and possible imprisonment. The second option is to amend prior tax returns, known as “quiet disclosure.” 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.
Entering the voluntary disclosure program is the third option if you suspect you have committed a federal tax crime. While this system is built on trust, it has stringent repercussions for those found deliberately evading their federal tax obligations. An honest miscalculation or oversight in tax reporting is one thing. However, deliberately underreporting income, exaggerating deductions, or claiming unmerited credits is a grave matter, potentially leading to criminal tax prosecution.
Should the IRS decide to review your tax returns, the consequences can vary based on the nature of the discrepancies. A mere oversight might result in a 20% negligence penalty on any additional tax you owe, plus interest. However, if the IRS determines evidence of intentional/deliberate tax fraud, you could face a 75% civil fraud penalty on the extra tax assessed. In the most severe cases, this could escalate to criminal tax prosecution, potential imprisonment, and restitution for willful tax crimes. For green card holders, this could even lead to deportation post-incarceration. Additionally, there is a high risk of professionals losing their relevant licenses due to these convictions.
Hence, the need to rectify these missteps and soften the blow of potential civil penalties while removing the risk of criminal tax prosecution becomes paramount. The IRS Voluntary Disclosure Practice (VDP) offers a viable path for taxpayers who deliberately failed to comply with federal tax laws, allowing them to correct their past mistakes without criminal prosecution. The IRS considers timely, accurate, and comprehensive voluntary disclosures when determining whether or not to recommend criminal prosecution for tax violations. This program, formalized through Form 14457 (Parts I and II), is designed to alert the IRS about past non-compliance that might be perceived as intentional tax fraud. 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.
A voluntary disclosure implies a commitment to settle any additional tax, penalties based on the program, and interest. The program requires you to submit a collection information statement if you cannot fully pay the total amount.
However, if the IRS has initiated an audit, received a tip-off about your discrepancies, or issued a subpoena, the window for a voluntary disclosure might have closed. In such scenarios, consulting our dual-licensed Criminal Tax Defense Lawyers & CPAs would be wise. We will swiftly evaluate your tax compliance, liaise with the IRS, and work diligently to minimize your criminal tax exposure, whether you’re facing a Standard Civil Audit, Eggshell Audit, Reverse Eggshell Audit, or a Criminal Tax Investigation.
DOJ Tax Division’s Corporate Voluntary Self-Disclosure Policy
Beyond the IRS’s Voluntary Disclosure Practice, taxpayers should 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. At the Tax Law Offices of David W. Klasing, our experienced team of dual-licensed Attorneys and CPAs can expertly guide you through the complexities of the DOJ Tax Division’s Corporate Voluntary Self-Disclosure Policy and the IRS Voluntary Disclosure Practice. We understand the nuances of the policy’s scope, including the types of entities it covers, and can help you make informed decisions on the best course of action. Our team has decades of experience helping clients whose tax returns were false or misleading to correct these issues through the various voluntary disclosure programs offered by the IRS.
Introducing The Tax Law Offices of David W. Klasing in Miami, Florida
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 Miami, Florida. Our award-winning, nationally recognized team of dual-licensed Tax Attorneys and CPAs brings over three decades 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 Miami, 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 Miami, 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, while our services extend to federal tax assistance for Miami-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 online form now.
Suppose 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 by an IRS tax audit, eggshell audit, reverse eggshell audit, or criminal tax investigation. In that case, it is in your best interest to contact an experienced tax defense attorney to determine your best route back into federal tax compliance without facing criminal tax prosecution.
Over the past 15 years, our firm has guided countless clients through domestic and offshore voluntary disclosure programs. Throughout our extensive experience, no client has faced criminal tax prosecution after making a voluntary disclosure. Instances of the IRS prosecuting those who’ve made such disclosures are rare. On the few occasions it has happened, it’s typically because the taxpayer was dishonest during the disclosure process.
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.
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.
David’s proven proficiency is now available in Miami, Florida, at our appointment-only virtual office, providing both legal and tax services in one place—at a single hourly billing rate. We have just introduced a flexible scheduling option where clients can reserve a four-hour slot at any of our satellite locations. David W. Klasing will travel to any of our satellite offices to meet with you. It would need to proceed with a one-hour reduced rate initial phone or encrypted go-to-meeting reduced rate initial consultation to warrant travel to the Florida Gold Coast from California to ensure we are a good fit for your current needs. We have designed this service to benefit our clients, with no additional travel expenses added to your bill. Call us at 800-681-1295 or complete our online contact form today.
In addition to our fully staffed 19,700 square foot penthouse 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, Sacramento, Las Vegas, Nevada; Salt Lake City, Utah; Phoenix, Arizona, Albuquerque, New Mexico. We also have virtual offices in New York, New York; Austin, Texas; and Washington, D.C.
Our Miami, Florida (Virtual) office is conveniently located at:
80 S.W. 8th Street, Suite 2000, Miami, FL 33130
1-(786)-999-8406
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