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Recent Fraud Cases Highlight IRS Criminal Prosecution Process

With tax season upon us, attentions are turned to tax compliance and how best to stay on the right side of the Internal Revenue Service.  As taxpayers across the country work to prepare their tax filings for the year, it is important for everyone to remain mindful of the types of activities known to trigger IRS investigations and perhaps even criminal prosecutions.  The Maryland criminal tax lawyers at Rosenberg Martin Greenberg can answer all of your questions about tax compliance in the lead-up to April 15.  We also offer unrivaled representation to clients in need of assistance due to an IRS tax fraud investigation.

Recent fraud investigations show need for taxpayer diligence

According to a recent compilation released by the IRS, fiscal year 2015 witnessed a large number of serious tax fraud investigations resulting in pleas, convictions and serious penalties for offenders. One such investigation centered around the activities of a California man who was found to have filed false tax returns for the years 2006-2010.  The fraudulent filings represented an under-reporting of business income totaling over $1.1 million and personal income amounting to over $1 million.

This failure to fully report income created a $687,000 loss of tax revenue.  The offending taxpayer ultimately received a sentence of 18 months’ imprisonment and was ordered to pay restitution in the amount of $687,182.

In late 2014, a California attorney received a sentence of 18 months’ imprisonment after being found guilty of tax evasion.  According to evidence presented at trial, the attorney stole substantial sums from investors, as well as clients of his legal practice.  In one case, money was taken directly from the medical trust of a client who was ultimately left destitute.  Embezzled funds were concealed by using various accounts and through the use of false statements to investors, law firm clients, and the IRS.  Rental income and real estate assets were hidden from IRS agents who had attempted to collect over $650,000 in unpaid tax obligations spanning the years 1993-1999.

November, 2014 saw an Illinois home builder who was sentenced after pleading guilty to filing false tax returns and making false statements in bankruptcy proceedings.  Court documents revealed that the individual in question filed false or fraudulent personal income tax returns five years in a row and did not file required corporate tax returns for either of his business entities.  In the end, these actions resulted in a federal tax revenue loss of $1,271,280.  Following his guilty plea, the former builder received a sentence of 30 months in prison and was ordered to pay $296,643 in restitution.  On top of those sanctions, he remains liable for every dollar of taxes and interest still due, along with civil penalties which could reach 75 percent of the amounts outstanding.

Maryland criminal tax defense lawyers can make a difference

Convictions stemming from income tax fraud or evasion bring the possibility of substantial terms of imprisonment, financial penalties and forfeiture proceedings.  The Baltimore tax fraud attorneys at Rosenberg Martin Greenberg stand prepared to assist those who have questions or concerns about tax compliance issues, whether related to personal income or to a business enterprise.

The possibility of a federal tax fraud prosecution is not something to take lightly.  The potential punitive sanctions are simply too great to disregard.  If you believe you are at risk of being the subject of an investigation by the IRS, or you have already been informed that an inquiry is underway, an experienced, knowledgeable tax fraud lawyer can be your key ally in securing the best possible resolution.  For an initial consultation about your situation, contact Leigh Kessler at 401.649.4991.

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