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Taxpayer in Prison Sentenced to Additional Time After DOJ Discovers Omissions on Pre-Sentencing Disclosure

According to a Department of Justice press release, an inmate who is serving a prison sentence for committing bank and tax fraud was sentenced to serve an additional 20 months due to his untruthfulness when completing pre-sentencing disclosure statements. This story is a prime example of the importance of legal counsel during all aspects of a tax examination or criminal tax litigation. 

Taxpayer Intentionally Omitted Hundreds of Thousands of Dollars of Assets

Court documents reveal that Casey Padula, a former Port Charlotte, Florida resident, was sentenced to serve an additional year and eight months in federal prison for willfully failing to disclose all of his assets to the Department of Justice before he was sentenced. Padula was sentenced to serve 57 months in federal prison in mid-2017 after pleading guilty to both bank and tax fraud (see our prior coverage of Padula’s case here). 

Padula’s prior illegal activity, leading to his 57-month prison sentence, involved the utilization of short-sale transactions that were intended to reduce his mortgage of more than $1.5 million. Prior to sentencing after a plea agreement, defendants are typically required to complete a financial disclosure, which is intended to serve as an inventory of all of the defendants’ assets. This assists the Department of Justice and the court determine the appropriate financial punishment for the crime (generally in the form of restitution or asset forfeiture). In this case, Padula completed the financial disclosure form without including nearly $340,000 of assets, including a large amount of case and new luxury vehicle that he had purchased for his daughter. 

The Importance of Tax Counsel

It is unknown whether Padula was represented by counsel at the time that he completed the financial disclosure documentation, but in a great many cases, taxpayers who act on their own believe that they won’t get caught if they are less than truthful with the IRS or Department of Justice. The assistance of a tax defense attorney will ensure that the decisions that are made regarding the case are well informed and in your best interest.

Whether you are under examination or the IRS or state tax authority has opened an investigation, it is in your best interest to contact an experienced tax attorney as soon as possible. Your seasoned tax lawyer will work with you to understand the facts of your case and assist in the development of a strategy that keeps your financial and physical freedom at a level of utmost importance. 

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Contact an Experienced Tax Attorney Today

The tax and accounting professionals at the Tax Law Offices of David W. Klasing have extensive experience representing a diverse group of taxpayers. From individuals to middle market businesses and beyond, our team of zealous advocates will assist in the development of a strategy to help you reach your specific goals and objectives. Whether you are under a tax examination or are in need of tax planning advice, contact the Tax Law Offices of David W. Klasing today, online or by phone at (800) 681-1295, for a reduced-rate consultation.  

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In addition to our staffed main offices 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.

 

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