From the Tax Law Offices of David W. Klasing -Michigan Man Charged with Filing False Tax Returns and Failing to Remit Employment Taxes

IRVINE, Calif., July 18, 2024 /PRNewswire/ -- According to a Department of Justice press release, a Michigan man was recently charged with filing false tax returns, along with other tax-related charges, relating to a transportation business that he ran. This story exemplifies the seriousness of being accused of intentionally violating federal tax laws. If you have failed to file a tax return for one or more years, or if you have failed to be truthful on the tax filings that you have made, you should consult with an experienced tax defense attorney and develop a strategy to get right with the government.

Defendant Accused of Filing False Returns and Failing to Remit Employment Taxes

Court records reveal that Ali Kassem Kain of Northville, Michigan recently appeared in federal court on criminal tax charges of filing false tax returns and failing to pay employment taxes for his company's employees. According to the accusations in the indictment, Kain operated a transportation business from 2017 to 2020 and underreported millions of dollars in gross receipts on both corporate and personal tax returns. Additionally, he allegedly failed to properly withhold and pay Social Security, Medicare, and federal income taxes for his employees. Federal prosecutors say that Kain's actions caused a tax loss of nearly $5 million to the IRS.

If convicted, Kain faces up to five years in prison for each count of failing to collect and pay over employment taxes and up to three years in prison for each count of filing false tax returns. He could also be ordered to serve a period of supervised release and pay restitution to the IRS, representing the amount of tax loss that he allegedly caused the government.

The Importance of Seeking Out Tax Advice Early

If you have fallen behind on your tax filing obligations, it is imperative that you consult with a seasoned tax attorney to determine the extent of your exposure and what steps are necessary to bring you into tax compliance. Taxpayers who attempt to rectify their noncompliance typically have better outcomes than those who wait to be audited / criminally investigated (and potentially prosecuted). Working with our offices to get ahead of your tax compliance, planning and controversy issues will make all the difference!

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!

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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.  

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

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