Awards & Recognition
The Tax Law Offices of David W. Klasing
New York, a bustling metropolis renowned for its financial prowess and diverse commerce, is not exempt from the intricate challenges of federal tax regulations. Numerous individuals and small enterprises in the city often feel uncertain about the complicated federal tax rules and tend not to be risk-averse. Consequently, if you face a criminal tax investigation or are concerned about a high-risk audit potentially escalating into an eggshell or reverse eggshell audit, it’s prudent to grasp the potential severity of your situation. When confronting an IRS criminal investigation or a high-risk Eggshell or Reverse Eggshell audit, there are specific measures you should undertake and others you should sidestep to establish a robust defense and mitigate any potentially devastating repercussions.
Swift and Deliberate Action is Key
Addressing an IRS criminal tax investigation demands immediate and calculated action. Recognizing the early signs of an IRS criminal inquiry can tilt the outcome to your advantage. It’s crucial to promptly engage a dual-licensed criminal tax defense Attorney and CPA. Their profound knowledge of tax legislation and insights into the IRS’s clandestine investigation methods can play a pivotal role in damage control. The primary objective is to settle the criminal tax investigation or perilous federal tax audit without escalating to criminal tax prosecution, evading the severe negative publicity and life-altering consequences accompanying an indictment.
The Universality of Federal Tax Responsibilities
Despite New York’s iconic skyline and its status as a global financial hub, it’s vital to acknowledge that federal tax obligations are universally rigorous. From comprehending the phases of an IRS tax audit and federal criminal tax probes to identifying potential red flags that might attract the attention of the IRS’s Criminal Investigation Division, taxpayers are counseled to be thoroughly informed. Federal criminal tax infractions mainly center around not filing tax returns or intentionally submitting fraudulent return details. Such lapses or errors can result in severe civil and criminal tax penalties, which, in some instances, can encompass prosecution, imprisonment, and restitution. It’s noteworthy that the majority of criminal tax allegations originate from federal tax authorities. Thus, a profound comprehension of federal tax regulations and the intricacies of related criminal tax statutes is essential. Amid the vibrant streets and towering skyscrapers of New York, it might be alluring to traverse these challenges independently or with your Original Tax Preparer. However, the stakes are too high, and the repercussions too severe to undertake such risks.
Avoid Approaching Your Original Tax Preparer During a High-Risk Federal Tax Audit or Criminal Investigation in New York!
During a federal tax audit or criminal tax investigation in New York, your first instinct might be to seek assistance from the individual or firm that initially prepared your federal taxes. However, this could be a potentially disastrous move due to the following:
Potential Exposure of Sensitive Information: Attorney-client privilege doesn’t protect conversations with your accountant or tax preparer. If they’re called to testify in a subsequent federal tax proceeding, they must disclose any incriminating information you’ve shared. Moreover, when tax preparers find themselves under federal scrutiny, they might deflect responsibility onto their clients to protect their professional standing and livelihood;
Absence of Legal Safeguards and Confidentiality: Only a relationship with a tax attorney can offer the confidentiality and protection you require during a high-risk federal tax audit or criminal tax investigation. The attorney-client privilege and the attorney work-product doctrine ensure that any information or admissions you provide while seeking legal counsel remain confidential and
Unparalleled Legal Expertise: Tax attorneys have the unique advantage of collaborating with consulting accountants under the protection of attorney-client privilege, facilitated by a legal instrument known as a Kovel letter, which ensures the confidentiality of your shared information while benefiting from the expertise of accounting professionals. Furthermore, while accountants prioritize precision, attorneys focus on advocacy. An attorney’s expertise becomes invaluable when navigating the complexities of federal tax laws and disputes in New York.
The Tax Law Offices of David W. Klasing, focusing on high-risk civil and criminal federal tax controversies, stands ready to offer its specialized expertise to the residents and businesses of New York. With a team of seasoned Dual Licensed Criminal Tax Defense Attorneys and CPAs, our office is uniquely poised to navigate New Yorkers through the intricate maze of federal civil and criminal tax exposure.
Boasting an impeccable “A+” rating from the Better Business Bureau and a perfect 10.0 from AVVO, Mr. Klasing’s unwavering commitment to top-tier Civil and Criminal Tax Defense Representation is evident. Our firm is not just another name in the vast legal landscape of New York. It is a beacon of federal tax defense excellence, with a remarkable track record of victories, helmed by one of the nation’s most distinguished tax professionals. In a country teeming with attorneys and CPAs, an estimated 24,000 professionals can claim dual licensure. Among this select group, only around 3,000 have the added accolade of a Master’s in Taxation. David W. Klasing, a luminary in this elite circle, harnesses his unparalleled academic credentials and hands-on experience to ardently represent our clients in their civil and criminal tax defense endeavors. Moreover, our strategic approach of simultaneously handling a mix of civil and potential criminal tax controversies keeps the IRS on its toes.
David’s proven proficiency is now available in New York at our appointment-only satellite 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. This option must be preceded by a one-hour phone or go-to-meeting consultation to warrant incurring the travel expenses and opportunity costs of traveling to the East Coast. 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.
Why Might the IRS Launch a Criminal Tax Investigation?
Navigating the intricate maze of IRS criminal tax investigations in New York can be daunting. Most taxpayers remain oblivious to potential issues until an unexpected visit from IRS criminal tax investigators blindsides them. These investigations can arise from many reasons, ranging from unintentional oversights to deliberate tax evasion tactics.
Why Might the IRS Launch a Criminal Investigation?
- Engaging in Deceptive Tax Schemes: The IRS is vigilant against taxpayers suspected of participating in illegal tax shelters or orchestrating intricate transactions to conceal income. Such maneuvers are designed to dupe the IRS and shirk tax responsibilities. Engaging in these tactics can quickly land you under the IRS’s microscope.
- Intentional Non-compliance: Deliberately failing to file or pay your taxes can catalyze an IRS criminal tax investigation. Such willful non-compliance can culminate in severe civil and criminal tax penalties, encompassing hefty fines and potential incarceration.
- Submission of Counterfeit Documents: Furnishing the IRS with fabricated financial records, such as falsified receipts, to reduce tax liabilities can severely compromise the tax system’s integrity. Engaging in this act can trigger a rigorous criminal tax investigation.
- Offshore Tax Evasion and Money Laundering: In collaboration with global agencies, the IRS constantly looks for individuals or entities funneling unreported funds into offshore accounts or engaging in money laundering. Such practices are red flags for potential tax evasion.
- Engagement in Illicit Activities: Involvement in organized crime, drug trafficking, or fraud can precipitate an IRS criminal tax investigation. The government’s focus is to unearth federal tax violations tied to the illicit proceeds in question.
The Consequences of Tax Crimes: Beyond Jail Time
Undoubtedly, a conviction for federal tax crimes can lead to imprisonment. However, the government must substantiate that taxpayers intentionally evaded their obligations to secure a conviction. Making an honest error on your tax returns won’t invoke criminal tax repercussions. However, incarceration isn’t the sole consequence. Tax crimes can lead to:
- Monetary Fines: Convicted individuals might face substantial fines, determined by the magnitude of evaded taxes, the evasion’s duration, and other exacerbating elements.
- Restitution: Courts can mandate defendants to reimburse the government for the outstanding taxes, including accrued interest and penalties.
- Civil Penalties: Separate from criminal tax penalties, civil tax penalties enforce tax law adherence. These can range from late filing to accuracy-related penalties for unjustified deductions.
- Asset Seizure: The government can confiscate assets linked to certain federal crimes, including bank accounts, properties, or vehicles. Federal tax crimes are not one of them, but associated behavior can create exposure.
- Probation: Courts might impose probation, mandating compliance with specific conditions, such as consistent reporting to a probation officer or settling outstanding taxes.
- Professional License Revocation: Professionals, especially accountants or tax preparers found guilty of tax crimes, risk losing their professional licenses, severely hampering their career trajectory.
- Reputational Damage: A tax crime conviction can tarnish one’s reputation, affecting both personal and professional spheres. The ensuing social stigma can have far-reaching implications.
If you’re trapped in the web of an IRS criminal tax investigation in New York, it’s imperative to have seasoned legal representation. The dual licensed Civil and Criminal Tax Defense Attorneys & CPAs at the Tax Law Offices of David W. Klasing stand ready to champion your cause. Secure a reduced-rate initial consultation by contacting our offices at (800) 681-1295 or scheduling a reduced-rate initial consultation online.
What Signals a Shift from a Standard Federal Audit to a Criminal Tax Investigation?
In New York, discerning the difference between a routine federal audit and the exponentially more detrimental criminal tax investigation led by the IRS’s Criminal Investigation Division (CID) is paramount. While the primary objective of a tax audit is to ascertain the accuracy of reported taxes, a CID probe is geared towards gathering evidence to potentially charge someone with criminal tax violations, primarily for the deterrent effect it casts on the general populace. This approach stems from the belief that maintaining faith in the federal tax system necessitates regular criminal tax enforcement against intentional rule-breakers.
CID’s investigative focus encompasses:
- Legal Source Income Tax Violations: Addressing individuals who, despite earning legally, illegally evade the taxes they rightfully owe.
- Financial Crimes from Unlawful Activities: Encompassing tax offenses, money laundering, and other financial crimes tied to illicit activities.
- Drug-Related Financial Crimes: CID’s significant role in combating drug crimes involves tracing and documenting the financial trails leading to critical figures in drug syndicates.
- Counterterrorism Financing: CID collaborates with other federal agencies, lending its financial investigative expertise to terrorism-related cases.
How Rigorous is the IRS Tax Audit Process in New York?
Federal tax audits in New York can span a spectrum of scrutiny levels, from simple correspondence-based clarifications to intensive on-site evaluations where IRS agents meticulously comb through your financial records in your home or your place of business. Regardless of the audit’s nature, swift action is essential. Occasionally, the IRS might deploy a Fraud Technical Advisor (FTA) during audits to identify potential tax fraud indicators. Unearthing such signs can prompt the FTA to recommend a comprehensive review by the IRS criminal tax investigation unit. Given the Criminal Investigations’ formidable 90% conviction rate in cases they choose to investigate in New York, securing knowledgeable allies is non-negotiable. If you suspect or are certain you’re in the crosshairs of an IRS criminal tax investigation, contact the dual licensed Civil and Criminal Tax Defense Attorneys & CPAs at the Tax Law Offices of David W. Klasing as soon as possible. We offer a reduced rate initial consultation, which you can arrange by calling (800) 681-1295 or by clicking here to schedule online.
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, and Albuquerque, New Mexico. We also have virtual offices in Austin, Texas; Miami, Florida; and Washington, D.C.
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