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Recent Cases Show Government’s Willingness to Prosecute Maryland Tax Fraud

Now that the height of tax season is upon businesses and individuals across Maryland, concerns about compliance and potential prosecution of tax crimes have returned to the forefront. When it comes to pursuing cases of suspected tax fraud, the Internal Revenue Service, Department of Justice, and the Comptroller of Maryland are known for their aggressiveness. The arsenal of collection tools and criminal sanctions at their disposal make running afoul of the tax laws a very serious matter.

At Rosenberg Martin Greenberg, we understand the complexities of providing effective criminal tax defense services and stand prepared to help our clients stay on the right side of the law.

Comptroller of Maryland’s Enforcement Mechanisms

The Constitution of the State of Maryland established the Office of the Comptroller for the broad purpose of exercising “general superintendence of the fiscal affairs of the State.” To that end, many State taxes are overseen and collected by the Comptroller, including corporate and personal income taxes, sales and use taxes, estate taxes, excise taxes and more.

To fulfill these duties, the Comptroller’s Enforcement Program was created and staffed with agents who are also sworn law enforcement officers.  Criminal investigations initiated by these officers can conclude with physical arrest or issuance of criminal citations to those accused of tax fraud, evasion, filing false returns, failure to file or other serious offenses.

Federal Prosecution of Tax Crimes

Just as the State of Maryland actively pursues cases of suspected tax crimes, the Internal Revenue Service is renowned for its zealous investigation of those believed to have committed fraud, evasion or other types of offenses relating to federal tax obligations. The agency’s Criminal Investigation Division is known for having the most skilled financial investigators in the federal government.  As a result, the Department of Justice convicts criminal tax defendants at a higher rate than nearly every other category of federal defendant.

Criminal tax fraud at the federal level carries the possibility of significant imprisonment, monetary penalties, and forfeiture actions. Therefore, individuals and businesses suspected of, or investigated for, filing false tax related documents, failing to pay taxes due, failing to file tax returns or committing other types of tax fraud need to enlist the aid of skilled Maryland criminal tax defense lawyers with a track record of success.

Recent Criminal Tax Cases Involving Maryland Defendants

Criminal cases involving Maryland taxpayers over the past year had underscored the willingness of state and federal agencies to use all methods at their disposal to secure convictions of those accused of tax crimes.

For example, in July of 2014, a Nottingham, Maryland resident was sentenced to 15 months of incarceration followed by three years of supervised release for her role in a conspiracy to obtain fraudulent tax refunds through the preparation of false federal income tax returns.  She was also required to make restitution in the amount of $546,785.  Others involved in the scheme were sentenced to incarceration or probation and were required to pay substantial restitution.

In September of 2014, a husband and wife were indicted for embezzling from employee benefit plans and for tax evasion.  The indictment seeks forfeiture of $284,699, along with forfeiture of a residence and luxury vehicle.  The indictment also alleges a tax loss of $256,069.  The defendants face a maximum of five years in prison for each of the four counts of embezzlement and five years in prison for the tax evasion count.

Baltimore Criminal Tax Defense Lawyers

At Rosenberg Martin Greenberg, we know the tremendous sense of anxiety and fear the specter of a criminal tax prosecution can cause. If you have found yourself in the crosshairs of a Maryland or federal taxing authority, the help of seasoned Maryland tax fraud attorneys can make all the difference in the outcome you are able to achieve.

For a no-cost consultation, contact Leigh Kessler at 410.649.4991 or lkessler@rosenbergmartin.com.

Rosenberg Martin Greenberg

25 South Charles Street, 21st Floor MD 21201
Phone: 410-727-6600
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Rosenberg Martin Greenberg

705 Melvin Avenue Annapolis, MD 21401
Phone: 410-727-6600
Map & Directions