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Paying taxes is often like pulling teeth. Most of us can’t stand doing it, yet we know that the repercussions from avoiding it can be far worse. A Massachusetts dentist likely knows this analogy much more than he would like to. Earlier this year, we brought you a story about a medical doctor that was involved in tax evasion and now it seems that dentist will get its turn.
According to a press release by the Department Of Justice, George Fenzell pled guilty in a federal court last week on charges related to tax evasion. The government alleged that Fenzell failed to file federal tax returns for several years and took steps to evade the payment of those taxes once he finally did file. Operating dental practices in Shrewsbury, Massachusetts, and Brookline, New Hampshire, Fenzell failed to file timely federal tax returns between 1999 and 2012. Further, the dentist organized his affairs using sham entities in an effort to conceal his assets.
Back in 2007, The Massachusetts Department of Revenue commenced an action to collect taxes that Fenzell owed to them. In response to the investigation that preceded the collection attempts, Fenzell filed some of the federal returns that he had previously failed to file. When all of the taxes that he owed from the preceding 8 years were tabulated, he admitted to owing over $125,000 to the IRS.
But instead of paying the tax bill, he made an effort to reduce the appearance that he had the funds to pay. Fenzell made his dental receipts payable to the nominee entities that he had established earlier in order to evade taxes in the first place. Several of the entities were structured in a way that made it difficult for the IRS to detect Fenzell’s tax evasion. One of the, a trust, had multiple trustees, providing the appearance that it wasn’t established solely to house fenzell’s money. Further, a nominee trust consisted of comingled money in order to avoid fraud detection.
Though Fenzell’s plea deal includes only one charge of tax evasion, he may be calling a federal prison his home for quite a long time. One count of tax evasion can carry a maximum of five years in prison. And to top it all off, the dentist will still have to pay the back taxes, fees and penalties that he sought to avoid.
Whether you are a taxpayer that is being accused of tax evasion or crime related to tax, or are simply being audited, having an experienced tax professional on your side will prove to be a worthwhile investment. Some of the most incriminating pieces of evidence in a criminal tax trial are gathered at the audit or civil examination stages. Many taxpayers believe that they will be able to talk their way out of their tax troubles. This is generally far from reality. IRS examiners have the noses of canines, in that they can sense when something isn’t right. They often seek out “badges of fraud” when examining the records of a taxpayer. If they come across enough badges of fraud, the case is referred to the IRS Criminal Investigations Division for further review.
The experienced tax and accounting professionals at the Tax Law Offices of David W. Klasing understand that going through an examination with the IRS can be stressful. Having professionals that have years of experience dealing with the IRS and the Criminal Investigations Division can help ensure that you do not incriminate yourself during an examination. We understand the importance of your financial well-being and value your freedom. Thus, we will do everything in our power to keep your money in your pocket and you out of prison. Contact the Tax Law Offices of David W. Klasing at (800) 681-1295 today for a reduced-rate consultation.