Earlier this year, we brought our readers the story of Frederick Kriemelmeyer, a 70-year-old dentist from La Crosse, Wisconsin. Kriemelmeyer was convicted on four counts of tax evasion and faced decades in prison. Although most of the country is still feeling the effects of the COVID-19 pandemic, Kriemelmeyer’s planned sentencing went on as scheduled. This story should remind taxpayers with unfiled tax returns or unreported items of income that the IRS and Department of Justice have a track record of examining and investigating those suspected of tax fraud and evasion, global pandemic or not. Though, there is currently an opportunity open to all taxpayers to work with an experienced tax attorney to get right with the government before full-scale examinations, investigations, and prosecutions restart at full capacity.
According to a Department of Justice press release, Kriemelmeyer was sentenced last week to serve six years in federal prison. At the conclusion of his sentencing hearing, he was remanded to the custody of the U.S. Bureau of Prisons. In addition to the 72 months of physical incarceration, Kriemelmeyer was ordered to serve three years of supervised release and to pay restitution to the IRS in the amount of $226,839.
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As we discussed in our last blog post related to this litigation, Kriemelmeyer was ordered by a U.S. District Court to pay approximately $135,000 of federal income taxes that were overdue. By 2012, his outstanding tax debt had grown to over $450,000. Between 2013 and 2015, Kriemelmeyer took various steps to avoid paying his tax bill, including asking his dentistry patients to pay him in cash or checks without the payee line filled out.
Kriemelmeyer’s story is not all-around uncommon. Oftentimes, a taxpayer with a large outstanding tax bill will simply ignore it. In the short term, the taxpayer will try to forget about the looming liability. In the long term, the balance continues to grow as interest and penalties accrue. There will come a point in time where the tax bill is simply so high that the taxpayer feels trapped and helpless.
Instead of attempting to bear the burden of an enormous tax bill alone, taxpayers should work with an experienced tax attorney who will first determine whether the amount due is accurate. To the extent the taxpayer’s tax debt is correct, your tax lawyer will help you determine your options. There are many strategies available to help mitigate the sometimes-harsh results of a large tax debt. For instance, a taxpayer may make an Offer-in-Compromise, which can sometimes result in a massive reduction of tax due. Tax motivated bankruptcy may also provide relief. Your tax attorney will work with you to determine which program or strategy best fits your specific situation.
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.
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