IRVINE,
Calif., April 17, 2024 /PRNewswire/ -- Tax evasion
carries severe penalties, potentially resulting in substantial
fines, lengthy prison sentences, and mandatory restitution to the
government. Usually, prison sentences will only be levied against
those who have deliberately & illegally evaded their tax
obligations. Such penalties can be avoided by those who simply made
honest mistakes on their tax returns.
For example, a Georgia man has
been sentenced to two years in prison for evading federal income
taxes. The Georgia resident worked
as a tax preparer, deliberately concealed over $1.28 million in income from his amusement
machine business, resulting in a $550,000 tax loss to the Internal Revenue Service
(IRS). The sentencing was announced in 2023 by the Department of
Justice, with the defendant also being ordered to pay fines and
restitution as part of his punishment.
If you have been accused of tax fraud, are under
eggshell or reverse eggshell audit or facing a potential criminal
tax investigation get help from our Dual-Licensed Criminal Tax
Defense Lawyers & CPAs at the Tax Law Offices of David W. Klasing by dialing (800) 681-1295 or
clicking here to schedule a reduced rate initial consultation
online.
Overview of the Case for Tax Evasion
A resident of Statesboro, GA
was sentenced to a two-year prison term for deliberately &
fraudulently understating his federal income taxes. He worked as a
tax return preparer for a prominent national preparation firm from
1999 to 2021, expanded his involvement in 2015 by purchasing a
franchise in Claxton, Georgia.
Despite his managerial role, which involved hiring, training, and
overseeing other tax preparers, He evaded his tax obligations by
filing falsified returns from 2015 through 2017. He concealed over
$1.28 million in income, primarily
from his business venture, S&W Amusements. This enterprise
operated coin-operated amusement machines in various convenience
stores and gas stations. The resulting tax loss to the IRS totaled
approximately $550,000.
Chief Judge J. Randal Hall of the
Southern District of Georgia
handed down the Georgia resident's
sentence, which also includes three years of supervised release, a
$95,000 fine, and restitution of
$551,450 to the United States. The investigation into tax
evasion was conducted by the IRS Criminal Investigation unit, with
prosecution handled by Trial Attorneys Matthew C. Hicks and Richard J. Hagerman from the Department of
Justice Income Tax Division, alongside Assistant U.S. Attorney
John P. Harper III for the Southern
District of Georgia.
The U.S. government does not treat tax crimes lightly.
Fortunately, if you have encountered a high exposure tax issue, our
Dual-Licensed Tax Lawyers & CPAs will help determine the best
course of action. We are ordinarily successful at avoiding criminal
penalties like those faced by the Georgia resident here in most of the issues we
handle.
Potential Penalties Levied in Tax Evasion Cases
As shown by the previously mentioned case above, several types
of penalties may be levied in a tax evasion case. For instance, a
defendant in such a case may face any of the following:
Civil Penalties
Civil penalties for tax evasion can include substantial fines
imposed by the Internal Revenue Service (IRS) as punishment for
intentionally underreporting income or claiming false deductions.
These fines may amount to a percentage of the unpaid taxes owed,
further increasing the financial burden on the taxpayer. The
civil fraud penalty is 75% of the tax to have been
found to have been intentionally underreported. The
penalty is extremely dangerous in that if they have the evidence to
assess it, they also have the evidence needed to criminally
prosecute you.
Criminal Tax Penalties
Individuals convicted of tax evasion may face severe criminal
penalties, including imprisonment. The length of imprisonment can
vary depending on the severity of the offense and the amount of
taxes evaded. Additionally, convicted individuals may be required
to serve a period of supervised release following their prison
term, during which they are subject to specific conditions set by
the court.
Restitution
Tax evaders are often required to pay restitution to the
government, reimbursing the IRS for the taxes owed but not paid.
This restitution is intended to compensate the government for the
financial losses incurred because of the taxpayer's illegal
actions.
Other Potential Consequences of Tax Evasion
In addition to criminal and civil penalties, defendants may face
several other types of consequences in tax evasion cases. In
certain cases, these additional consequences can be just as harmful
as the criminal and civil penalties mentioned above.
Reputational Damage
A tax evasion charge can lead to significant reputational
damage, tarnishing the individual's character and integrity in the
eyes of the public, colleagues, and potential employers. The stigma
associated with being accused or convicted of tax evasion can have
lasting effects on one's personal and professional relationships,
eroding trust and credibility.
Financial Strain
Apart from fines and restitution, tax evasion charges can impose
significant financial strain on the individual and their family.
Legal fees associated with defending against tax evasion
allegations can be substantial, adding to the already hefty
financial burden. Moreover, the loss of income resulting from
imprisonment or the inability to secure employment due to
reputational damage can further exacerbate financial
difficulties.
Professional Consequences
Tax evasion convictions can lead to the loss of professional
licenses or certifications, limiting future career opportunities
and prospects. This can have long-term implications for the
individual's ability to work in certain industries or professions,
hindering their professional advancement and financial
stability.
Personal Consequences
The stress and emotional toll of facing criminal charges and
potential imprisonment can strain personal relationships and take a
toll on mental well-being. Family dynamics may be disrupted, and
the individual may experience feelings of isolation and shame.
Additionally, the stigma associated with a tax evasion conviction
can impact the individual's sense of self-worth and identity,
leading to long-term psychological repercussions.
How We Can Help if You Have Been, or Merely are at Risk of
Being, Accused of a Tax Crime
Our experienced legal team provides comprehensive legal support
to those who have been, or merely have risk of being, accused of
tax crimes. With extensive knowledge of tax laws and regulations,
we can offer personalized strategies to protect defendants' rights
and interests. From meticulously reviewing financial records to
crafting persuasive arguments in court or before the IRS, we will
strive to achieve the best possible outcome for our clients. We
understand the complexities of tax evasion cases and work
diligently to navigate the legal process effectively.
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.
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
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!
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 fully staffed main office in downtown
Irvine California, the Tax
Law Offices of David W. Klasing has
unstaffed (conference room only) California based satellite offices
in Los Angeles, San Bernardino, Santa Barbara, Panorama City, Oxnard, San
Diego, Bakersfield,
San Jose, San Francisco, Oakland, Carlsbad, Sacramento. We also have unstaffed (conference
room only) satellite offices in Las Vegas
Nevada, Salt Lake City
Utah, Phoenix
Arizona & Albuquerque New
Mexico, Austin Texas,
Washington DC, Miami Florida and New York New York that solely handle
Federal & California Tax issues.
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. We also now offer
a convenient scheduling option, where you can secure David W.
Klasing, Esq M.S.-Tax CPA's undivided attention for a 4-hour
consultation at any of his satellite offices.
See our Audit Representation Q and A
Library
Here is a link to our YouTube channel: click here!
Public Contact: Dave Klasing Esq.
M.S.-Tax CPA, dave@taxesqcpa.net
View original content to download
multimedia:https://www.prnewswire.com/news-releases/from-the-tax-law-offices-of-david-w-klasing---georgia-tax-preparer-faces-two-year-prison-term-for-evading-550-000-of-federal-income-taxes-on-his-own-returns-302118838.html
SOURCE Tax Law Offices of David W.
Klasing, PC