According to a Department of Justice press release, a former IRS employee was recently sentenced to serve more than a year in federal prison after being convicted of filing false tax returns and providing false information to the IRS. This story should serve as a reminder to taxpayers who have fallen out of tax compliance that, while there are opportunities to rectify your civil or criminal tax noncompliance, the consequences of failing to do so could be life-altering. If you have failed to file a federal or state income tax return for one or more years, or if you have filed a tax return containing knowingly false information, it is in your best interest to contact an experienced tax defense attorney to determine the best strategy to get right with the government.
After Being Caught, Defendant Tried to Submit False Documentation to IRS
If you recall from our previous blog post, Wayne Garvin, previously of Philadelphia, Pennsylvania, was indicted on three counts of tax evasion and two counts of corruptly endeavoring to impair and impede the due administration of the internal revenue laws. Federal prosecutors allege that between 2012 and 2016, Garvin, who was an employee of the IRS during the years in issue, claimed false deductions for a variety of expenses including charitable contributions, expenses related to rental properties, and expenses purportedly related to serving in the U.S. Army Reserves. The IRS and Department of Justice attorneys contend that the expenses for which the deductions were claimed were not actually incurred.
When the IRS notified Garvin that he was being audited for tax years 2013 and 2014, he allegedly provided fraudulent documentation attempting to substantiate the false deductions that he claimed. Department of Justice attorneys’ content that the documentation provided was also fraudulent. When the IRS notified Garvin that his tax returns were being referred for criminal tax investigation, he again submitted the allegedly false documentation to the IRS Special Agent conducting the criminal tax investigation.
Garvin was sentenced to serve 13 months in federal prison after pleading guilty in March. In addition to his prison sentence, he was ordered to serve three years of supervised release. Lastly, Garvin was ordered to pay $74,662 in restitution to the IRS, representing the amount of lost tax revenue.
Coming Back into Tax Compliance with the Assistance of an Experienced Dully Licensed Tax Attorney & CPA
The news of the defendant’s sentencing above is proof that the IRS and Department of Justice will investigate and if need be, prosecute any U.S. resident for failure to comply with federal tax laws. Luckily for taxpayers who may have fallen out of compliance, there are various strategies that can be employed to catch up on late or incorrect filings. Working with your experienced tax defense attorney, you will work to establish the pertinent facts in your case. Together, you will agree on the best route to bring yourself into tax compliance while minimizing the associated civil and criminal risks.
We Are Here for You
Regardless of your business or estate 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.
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.
How Can You Prevent Criminal Tax Charges?
If a taxpayer believes or is aware that they have existing noncompliance in their past tax returns and other filings, they may be able to make use of the voluntary disclosure process. Voluntary disclosure is an avenue by which noncompliant taxpayers may submit amended returns together with supplemental documentation. The government will ordinarily reward the taxpayer for coming forward voluntarily without having to be audited or criminally investigated for tax crimes by reducing the civil penalties that ordinarily apply and providing a pass on criminal prosecution for tax crimes.
Voluntary disclosure will not cure every issue, and it is important that you assess its effectiveness before taking this path. Voluntarily disclosing information that the government has already discovered will likely provide no benefit to the disclosing party. In any case, you will want to discuss your options with your Criminal Tax Defense Attorney as soon as possible to determine the best path forward.
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 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 a 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!
If you have failed to file a tax return for one or more years or have taken a position on a tax return that could not be supported upon an IRS or state tax authority audit, eggshell audit, reverse eggshell audit, or criminal tax investigation, it is in your best interest to contact an experienced tax defense attorney to determine your best route back into federal or state tax compliance without facing criminal prosecution.
The first step in defending yourself against invasive, costly, and potentially life changing IRS civil and criminal tax enforcement action is to share your story under attorney client privilege with a dedicated dually licensed Criminal Tax Defense Attorney & CPA like the ones at the Tax Law Offices of David W. Klasing. Call (800) 681-1295 or schedule online here for an initial case evaluation at a reduced rate.
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See our Criminal Tax Law Q and A Library