From the Tax Law Offices of David W. Klasing - Maryland Business Owner and Texas Tax Preparer Charged with Conspiracy & Tax Fraud, Face Decades in Federal Prison

IRVINE, Calif., Jan. 10, 2024 /PRNewswire/ -- According to a Department of Justice press release, a Maryland business owner and his Texas tax preparer were recently charged with engaging in a tax fraud scheme, potentially resulting in time in federal prison. This story exemplifies the severe consequences individuals, and their tax preparers, may face when they fail to file tax returns appropriately or file tax returns that contain information that is not true. If you have failed to file a tax return for one or more years or suspect your filings might not withstand IRS scrutiny, it's imperative to seek the guidance of a seasoned tax lawyer. Tax Evasion charges can be avoided if you are willing to knock on the IRS's door before, they knock down yours.

Defendant is Accused of Claiming False Refunds and Evading Federal Income Taxes

Court documents reveal that a business owner from Maryland and his tax preparer from Texas, were recently charged with numerous offenses including conspiracy to defraud the United States, filing false tax returns, and theft of government funds. According to the indictment, the business owner from Maryland filed at least 15 false tax returns between 2017 and 2022, fraudulently claiming nearly $65 million in false refunds. The IRS inadvertently issued a refund check of over $10 million, which the business owner used for personal luxury expenditures and shared a portion with his preparer. Additionally, the business owner is accused of tax evasion by paying personal expenses from a business account and failing to file personal tax returns or pay taxes on his business income from 2017 through 2021. Moreover, he additionally faces charges for allegedly applying for a fraudulent Paycheck Protection Program loan.

The potential criminal tax consequences for the business owner and his preparer are severe, with maximum penalties ranging from one year to 30 years in prison for the various charges. Additionally, the defendants may be sentenced to serve supervised release after a period of physical incarceration, as well as restitution to the United States. These penalties underscore the gravity of tax fraud and tax evasion, illustrating the federal government's commitment to enforcing tax laws and prosecuting those who attempt to evade their obligation to pay federal income tax.

Getting Right with the Government Before a Criminal Investigation or Prosecution

This story is a cautionary tale highlighting how easily individuals, businesses and their tax preparers can find themselves involved in civil and criminal legal battles with the IRS. Whether through intentional fraudulent activity or careless mistakes, the consequences of failing to comply with tax laws can be severe. If you're concerned about your tax situation or potential exposure, you should consider consulting with an experienced tax attorney. A knowledgeable tax professional can provide valuable guidance, help you understand your obligations, and assist in rectifying any past exposures in a manner that avoids criminal tax investigation and prosecution. Remember, it's never too late to seek help and ensure you get right with the government.

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.

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Public Contact: Dave Klasing Esq. M.S.-Tax CPA, [email protected]

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