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Two Northern California Businessmen Charged with Federal Tax Evasion

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    According to multiple news outlets, a pair of Northern California men were recently charged with federal tax evasion after allegedly taking part in a scheme that cost taxpayers more than $18 million. This story should remind taxpayers who have filed tax returns with information that they knew to be false that the desired fraudulent benefits are vastly outweighed by the potential life-changing civil and criminal repercussions that come along with being convicted of tax crimes. If you have failed to file a tax return for one or more years, or have filed a tax return that could not be supported upon IRS or state tax authority scrutiny, (audit, eggshell audit, reverse egg shell audit, or criminal tax investigation) it is in your best interest to contact an experienced tax defense attorney to determine the right path to get right with the government.

    Defendants Allegedly Made Payments to Nominee Entities in an Attempt to Hide Money From the IRS

    Court records reveal that Joseph Nubla and Henry Ku, of Pleasonton and Foster City, respectively, worked together at Brisbane Recycling Company, providing the disposal of concrete and other materials. Authorities allege that as a part of their scheme, Nubla wrote business checks totaling more than $18m to businesses that were controlled by Ku. Prosecutors allege that these payments were made in an attempt to conceal the funds from the IRS.

    When tax time came around, Nubla allegedly provided false information to the company’s tax preparer, indicating that the payments made to Ku’s companies were for legitimate and deductible business expenses. In reality, prosecutors allege that the pair used the funds to purchase expensive Bay Area real estate.

    If convicted on the conspiracy charges, the pair could face up to five years in federal prison. Additionally, a term of supervised release could be imposed to commence upon the completion of the defendant’s physical incarceration. Lastly, if convicted, the defendants will likely be ordered to pay restitution, representing the amount of tax loss that they caused.

    Working With a Tax Attorney to Come into Tax Compliance

    Not unlike others who find themselves in hot water with tax authorities, the defendants in the case likely mistakenly believed that their activity was minor in the grand scheme of criminal activity. Indeed, many Americans who engage in less-than-legal tax practices are under the impression that they are a small fish in a big pond. In reality, the IRS does not discriminate in who it opts to investigate and prosecute. Whether your tax offenses are large or small, the IRS and Department of Justice is not above investigating or prosecuting tax crimes.

    If you have failed to file an individual or business tax return for one or more years or have filed tax returns with knowingly-false information contained within it, you should take the time to consult with an experienced dually license Tax Defense Attorney & CPA. Together, you will determine the potential civil and criminal exposure that you may face and develop a strategy to come into compliance. The goal of addressing the noncompliance before the IRS contacts you is to minimize (or virtually eliminate) the potential for serious life-altering civil and criminal tax consequences. With the help of a seasoned tax attorney, you can spend less time worrying about your tax exposures, and more time enjoying life.

    Note: As long as a taxpayer that has willfully committed tax crimes (potentially including non-filed foreign information returns coupled with affirmative evasion of U.S. income tax on offshore income) self-reports the tax fraud (including a pattern of non-filed returns) through a domestic or offshore voluntary disclosurebefore 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 a voluntary disclosure.

    As uniquely qualified and extensively experienced Criminal Tax Defense Tax Attorneys, KovelCPAs 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!

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