Texas Attorney and Client Found Guilty of Tax Law Violations, Each Face Prison Sentences

Indiana Tax Preparer Indicted on Myriad of Tax Charges
January 29, 2020
Pennsylvania Anesthesiologist Sentenced to More Than Two Years in Federal Prison For Tax Crimes
January 31, 2020

Texas Attorney and Client Found Guilty of Tax Law Violations, Each Face Prison Sentences

According to a Department of Justice press release, an attorney and his client were recently convicted by a federal jury sitting in Texas on multiple tax-related counts. This story illustrates how a taxpayer (and even their attorney) can make matters much worse in an attempt to avoid paying an established tax liability to the IRS. If you owe a large sum to the IRS or state taxing authorities, or have taken unsupportable tax positions that could result in substantial tax liability, and possibly result in criminal tax exposure, it is in your best interest to contact an experienced tax attorney as soon as possible.

See our Criminal Tax Law Q and A Library

Lawyer Allowed Client to Use Trust Account to Hide Income and Assets

Prosecutors alleged that John Green, a Texas Attorney and Thomas Selgas, his client, worked in tandem in an attempt to prevent the IRS from collecting a $1.1 million outstanding tax debt owed by Selgas. As a part of the scheme, Green allowed Selgas to hide his funds in Green’s Lawyers Trust Account, an account that attorneys use to hold clients’ funds.

See our Tax Relief and Resolution Q and A Library

See our Offer in Compromise Q and A Library

See our Liens Levys and Garnishments Q and A Library

Selgas deposited funds into Green’s trust account instead of his own bank. Green proceeded to pay Selgas’ personal expenses, such as credit card bills and other invoices. The strategy established by Green and Selgas was a long-term arrangement, as prosecutors alleged that the arrangement had lasted 10 years, between 2007 and 2017. Both Green and Selgas were convicted of conspiracy to defraud the United States.  It is important to note here that Tax Evasion is basically two different crimes; evasion of assessment and evasion of payment.

Additionally, the pair worked together to file fraudulent tax returns for a partnership co-owned by Selgas by omitting significant amounts of partnership income. As a result, Selgas was also convicted of tax evasion. Sentencing was scheduled for later this year.

Hiring a Reputable Attorney Without Increasing Your Criminal Tax Exposure

Working with an attorney, whether or not the matter is related to tax, should never result in additional criminal tax exposure. The story above is an example of an attorney who assisted a client continue to break the law. An effective tax attorney will work with you to help resolve the issues instead of exacerbating them. There are various legal and ethical strategies that you and your tax counsel can explore and employ to make the payment or elimination of a tax debt work for you and the IRS or state taxing authorities.

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.

Here is a link to our YouTube channel: click here!

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.

 

Note: If you have concerns about the privacy of our initial or subsequent communication and are unable to easily travel to our Irvine / Orange County Main Office, consider scheduling a GoToMeeting to safely and securely establish an initial or maintain an existing attorney client relationship.  With end-to-end encryption, strong passwords and top-rated reliability, no one is messing with your meeting. To schedule a reduced rate initial consultation via GoToMeeting follow this link.   Call our office and request a GoToMeeting if you are an existing client. We are generally happy to travel to any of our appointment only satellite offices for a subsequent meeting in appropriate circumstances once a relationship is established via a signed engagement letter and the payment of an initial retainer or where enough retainer is available where a current client to cover the reasonable travel time and time required for the meeting.

Will it cost me more to hire the Tax Law Offices of David W. Klasing, who’s main office and the vast majority of the firm’s staff is located in Irvine California, but an appointment only Satellite office is close to my location, as opposed to a local company?  Absolutely not!  See our policies that address this issue here.