Questions? Feedback? powered by Olark live chat software

Texas Tax Professional Sentenced to Prison for Overstating Business Deductions

Texas Family Sentenced After Pleading Guilty to Tax Charges Stemming from Illegal Gambling Operation
June 27, 2020
Offshore Account Holders Should Consider Making a Voluntary Disclosure as Paradise Papers Are Investigated
Do You Need to File for Voluntary Disclosure if You Failed to Disclose Money Made Abroad?
June 29, 2020

Texas Tax Professional Sentenced to Prison for Overstating Business Deductions

According to a Department of Justice press release, a former tax preparer from Texas was recently sentenced to serve a significant prison sentence and pay a large amount of restitution after being convicted of orchestrating a tax refund scheme. Although most taxpayers are not engaged in schemes involving hundreds or thousands of tax returns, many taxpayers take certain liberties by either failing to file a tax return or reducing tax by omitting income or inflating deductions. Those taxpayers must face the reality that when COVID-19 related stay-at-home orders are fully lifted and federal employees return to work, tax practitioners expect a large uptick in tax audits and criminal investigations. The time is now to work with an experienced tax defense attorney to come into tax compliance. 

Note:  As long as a taxpayer that has willfully committed tax crimes (potentially including non-filed returns coupled with affirmative evasion of payment) self-reports the tax fraud (including a pattern of non-filed returns) 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.

It is imperative that you hire an experienced and reputable criminal tax defense attorney to take you through the voluntary disclosure process.  Only an Attorney has the Attorney Client Privilege and Work Product Privileges that will prevent the very professional that you hire from being potentially being forced to become a witness against you, especially where they prepared the returns that need to be amended, in a subsequent criminal tax audit, investigation or prosecution.

Moreover, only an Attorney can enter you into a voluntary disclosure without engaging in the unauthorized practice of law (a crime in itself). Only an Attorney trained in Criminal Tax Defense fully understands the risks and rewards involved in voluntary disclosures and how to protect you if you do not qualify for voluntary disclosure.

As uniquely qualified and extensively experienced Criminal Tax Defense Tax Attorneys, Kovel CPAs and EAs, our firm provides a one-stop-shop to efficiently achieve the optimal and predictable results that simultaneously protect your liberty and your net worth.   See our Testimonials to see what our clients have to say about us!

See our Non-Filer Q and A Library

See our 2011 OVDI Q and A Library

See our FBAR Compliance and Disclosure Q and A Library 

See our Foreign Audit Q and A Library

Tax Preparer Inflated Client Deductions to Obtain Larger Refunds

Court filings reveal that Oma Michel Ungu, 61, of Grand Prairie, Texas, was the owner and operator of Super Professional Tax Services. Between 2013 and 2016, Ungu prepared tax returns on behalf of his paying clients. During that time, Ungu admitted to having personally prepared at least one tax return with overstated business expenses that resulted in lower taxable income.

In prior litigation, Robert Poteet, a former employee of Super Professional Tax Services pleaded guilty to a single count of aiding and assisting in the preparation of a fraudulent tax return. As a result of his guilty plea, Poteet was sentenced to serve 18 months in federal prison.

At a recent sentencing hearing, Ungu was sentenced to serve 57 months in a federal prison. Additionally, Ungu was ordered to join Robert Poteet in repaying approximately $2.8 million in restitution, representing the estimated tax loss sustained by the government as a result of Super Professional Tax Services’ illegal activity.

Knowing When to Seek the Assistance of a Tax Lawyer

In preparing their own tax returns, many taxpayers have adopted the mindset that they are but a small fish in an infinitely large pond and thus, the chances of being caught are low. Although it is true that the pond is a large one, the IRS has made large strides in their ability to use technology to detect tax noncompliance. Using high-tech data analytics, IRS computers automatically scan over returns and direct certain returns to be reviewed by an IRS revenue agent. If the agent believes that badges of fraud are present, the matter will be escalated and could result in a criminal tax investigation.

One thing is generally true when dealing with tax compliance: coming forward and fixing mistakes made in the past yields a better result than waiting for the IRS to come and find you. Working with an experienced tax defense attorney, a taxpayer can fully lay out their facts and circumstances, decide on a go-forward strategy, and implement it. One valuable benefit of utilizing a tax attorney to achieve compliance is not having to interact with the IRS alone. Your tax defense attorney will alongside you every step of the way.

We Are Here for You

Regardless of your particular business or individual tax needs, the professionals at the Tax Law Offices of David W. Klasing are here for you. We are open for business and our team will help ensure that your business is too. Contact the Law Offices of David W. Klasing today to discuss your business with one of our professionals.

In addition to our main 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 and Sacramento. During the COVID-19 pandemic, our staff are working from home, but have full virtual meeting capability.

Our office technology allows clients to meet virtually via GoToMeeting. 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.