From the Tax Law Offices of David W. Klasing - New Jersey Man Indicted for Filing 55 False Tax Returns and Obstructing the IRS
IRVINE, Calif., Feb. 17, 2025 /PRNewswire/ -- According to a Department of Justice press release, a New Jersey man has been indicted for allegedly preparing and filing 55 false income tax returns and obstructing an IRS criminal tax investigation. This case highlights the serious legal consequences of attempting to file false tax returns in order to claim deductions and credits that the taxpayer is not entitled to. If you have filed a tax return that contains false information or have failed to file a tax return for one or more years, it is in your best interest to consult with an experienced tax attorney to determine the next best steps to get right with the government.
Defendant Allegedly Fabricated Deductions and Falsified Financial Records on Behalf of Tax Return Preparation Clients
Court records reveal that Christopher Demba, of Hillsborough, New Jersey, owned and operated Demba & Associates CPA LLC, where he allegedly assisted clients in falsifying tax returns to fraudulently reduce their reported tax liabilities. From 2018 through 2023, Demba allegedly engaged in fraudulent tax behavior by claiming false deductions, improperly carrying forward tax credits, and misclassifying income as deductible expenses. Prosecutors claim that these actions led to significant losses for the federal government.
The indictment further alleges that when the IRS began to look into him and his actions, Demba attempted to conceal the fraud by providing false working papers to IRS agents. Prosecutors contend that these documents were intentionally falsified to attempt to justify the deductions and credits claimed on the fraudulent tax returns. Government prosecutors say that this obstructed the government's ability to assess and collect the correct tax amounts.
If convicted, Demba faces up to three years in federal prison for each count. Additionally, the defendant may be ordered to serve a period of supervised release upon the release from any physical incarceration. Lastly, Demba may be ordered to pay restitution to the government related to the tax loss that he allegedly caused.
Understanding and Appreciating the Risks of Tax Fraud
This case serves as a strong reminder that the IRS has a history of aggressively pursuing businesses and individuals who attempt to defraud the government. Tax fraud can take many forms, including misrepresenting income, inflating deductions, falsely claiming tax credits, and submitting misleading financial records upon request. Regardless of the circumstances surrounding it, intentionally filing false tax returns can result in an investigation, criminal prosecution, or even incarceration.
Further and as mentioned above, attempting to mislead the IRS after they have caught your scent is typically a losing endeavor. There are laws in place to ensure that taxpayers who make false statements, produce false documents, or otherwise attempt to thwart the efforts of an IRS audit, collection effort or criminal tax investigation face additional civil and criminal tax penalties. The most effective strategy to pursue after finding out that you are the subject to a tax audit, criminal tax investigation or collection action is to reach out to an experienced tax lawyer to discuss your options.
The IRS has at its disposal and relies on advanced data analysis and investigative techniques to uncover suspicious tax filings and identify non-filers. For instance, the government has used mapping of neighborhoods and median household incomes for those same geographic areas to try to ascertain whether certain households are not reporting their true amount of income.
When a pattern of fraudulent behavior is identified, the IRS will often flag the returns for an audit and/or a criminal tax investigation. Once an individual or business becomes the subject of an IRS investigation, they may face intensive scrutiny that can lead to civil penalties, asset seizures, and, in cases involving intentional fraud, criminal tax charges. This is where the assistance of an experienced tax defense attorney becomes even more important.
The Importance of Seeking the Assistance of an Experienced Tax Attorney
For individuals who may have filed false tax returns, improperly claimed deductions, or misrepresented financial information, it is critical to seek the assistance of a seasoned tax lawyer as soon as possible. The IRS allows taxpayers to correct past mistakes voluntarily, and in some cases, coming forward before an audit or criminal tax investigation begins, can result in reduced penalties and might help avoid the filing of criminal tax charges.
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.
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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. |
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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. |
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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! |
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A tax defense attorney can assess your potential exposure, assist in the development of a compliance strategy, and negotiate with the government on your behalf to mitigate the impact before the situation escalates to something more serious. Individuals who wait until the IRS has initiated an audit or criminal tax investigation may find themselves in a far worse legal position, with fewer options for resolution.
The indictment of the defendant described above highlights the serious consequences of tax fraud and obstructing an IRS criminal tax investigation. For anyone with concerns about the accuracy of their tax filings, or for those who have failed to file a tax return for one or more years, taking early action can make the difference between resolving the issue civilly or facing criminal investigation or potentially, a criminal prosecution. Seeking guidance from an experienced tax attorney is the best course of action for individuals and businesses who are looking to get right with the government.
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Public Contact: Dave Klasing Esq. M.S.-Tax CPA, [email protected]
SOURCE Tax Law Offices of David W. Klasing, PC
SOURCE Tax Law Offices of David W. Klasing, PC
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