IRVINE, Calif., July 9, 2024 /PRNewswire/ -- According to a Department of Justice press release, an Arkansas man admitted to filing false individual income tax returns that significantly underreported his business income. This case highlights the importance of accurate federal income tax reporting and the severe penalties for attempting to deceive the IRS. If you have failed to file a tax return for one or more years, or have taken a position on a filed tax return that could not be supported upon examination, you should seek the assistance of a seasoned tax attorney to help determine the extent to your exposure and develop a path to tax compliance. 

Defendant Admitted to Underreporting Business Income in Annual Tax Reporting

Court documents reveal that Carlos Gonzalez, 59, operated Charley's Tree Service, a tree-trimming and removal business. From 2014 through 2020, Gonzalez admitted to having deliberately underreported more than $3 million in gross receipts from his business. This fraudulent activity resulted in a tax loss of approximately $920,694. Gonzalez's actions came to light during an IRS criminal tax investigation, leading to his guilty plea for filing a false 2019 income tax return.

Gonzalez's admission of guilt underscores the serious repercussions of falsifying tax returns. Gonzalez faces a maximum penalty of three years in prison for filing a false tax return. Additionally, the defendant may be ordered to serve a period of supervised release upon the completion of any physical incarceration. Lastly, Gonzalez may be ordered to pay restitution to the IRS, representing the amount of tax loss that he caused.

Coming Into Tax Compliance with the Assistance of Tax Counsel

The case of Carlos Gonzalez serves as a cautionary tale for all taxpayers. Intentionally underreporting income and filing false tax returns can lead to significant legal consequences, including substantial prison time. It is crucial for individuals and business owners to accurately report their income and comply with tax laws to avoid such severe penalties.

If you have filed inaccurate tax returns or underreported your income, it is essential to seek the assistance of a knowledgeable tax defense attorney, especially if you now find yourself under audit. An experienced tax lawyer can help you navigate the process of coming into compliance with the IRS and develop a strategy to resolve any outstanding tax issues. The sooner you address these matters, the better your chances of mitigating potential penalties and avoiding further legal issues related to your tax obligations.

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.  

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Public Contact: Dave Klasing Esq. M.S.-Tax CPA, dave@taxesqcpa.net

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