According to a Department of Justice press release, a Utah dentist was recently sentenced to serve five years in federal prison after being convicted of tax evasion and obstructing the IRS. This is an update to our previous coverage of the prosecution of this defendant and is a reminder to taxpayers that the best course of action after falling out of tax compliance is to work with a seasoned tax lawyer instead of attempting to evade enforcement attempts by the IRS. If you have failed to file a tax return for one or more years, or have filed a tax return that contained false information, it is in your best interest to contact an experienced tax defense attorney to come back into tax compliance without facing criminal tax prosecution.
You may recall from our previous blog post on this case that Geddes, a resident of Ogden, Utah, was a licensed dentist who owned and operated Mount Ogden Dental PC. Federal prosecutors alleged that Geddes evaded a total of approximately $1.8 million in federal income taxes. His alleged behavior went on throughout a period that extended from 1998 to 2014.
The government also claimed that Geddes obstructed the IRS in their efforts to collect on this debt. Geddes allegedly went so far as to file false liens against properties that he owned and submitted fraudulent bonds to discharge debt which were fabricated to appear as though they sourced from the account of the Treasury Secretary.
The initial indictment indicates Geddes used different businesses and made false statements to the IRS in an attempt to avoid paying taxes. Geddes submitted false documents entitled, "bond to discharge attachment for debt," in the hopes of resolving his outstanding tax bills and avoiding having his property seized, the charging documents say. The "bond to discharge attachment for debt" is a type of bond that a debtor can purchase that would seek to prevent a creditor from seizing property.
The indictment further indicated that Geddes filed these sorts of bonds multiple times to avoid having his property seized, though these bonds were bogus. In 2007, he submitted a bogus bond to the IRS that he claimed satisfied his outstanding tax amounts from 1997 to 2005, the indictment says.
Geddes also reported in tax returns to the IRS that his dental office had no gross receipts. The indictment says that Geddes knew this wasn't true, as the business had six-figure sums for the gross receipts in each of the three years. Those filings were the basis for the three counts of filing false tax returns.
The defendant profiled in the story above took extreme steps in an attempt to avoid paying his tax debt. Many Americans with unpaid tax bills do not go as far as Geddes did, but nonetheless take steps to avoid paying their tax debt. It is important to note that the criminal tax charges that Geddes faced are not reserved solely for those acting as egregiously as he did. Tax evasion and obstructing the IRS can take many shapes and can carry stiff civil and criminal penalties.
If you have failed to file a tax return for one or more years, or have taken a position on a filed tax return that could not be sustained upon examination, you should consult with an experienced tax defense attorney to establish a path forward to tax compliance. Together, you will work to understand the pertinent facts in your case. Then, you will jointly decide on a strategy aimed at being tax compliant while attempting to mitigate some of the risks of civil and criminal repercussions.
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.
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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.
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!