Many business owners choose to acquire and operate their businesses with partners. This allows them to divide the responsibilities and share the risks and the rewards. But what happens when one business partner falls behind on their federal taxes? Could the tax-compliant partner’s share of the business and business assets be at risk? Can the…
Category: Tax Crimes
Tax Crimes
Tax evasion, tax fraud, and other tax-related crimes can result in severe criminal penalties. We assist clients facing criminal tax investigations or charges. Give us a call to see how we can help, (713) 909-4906.
The IRS’s Challenges With Ghost Tax Preparation
The IRS conducts very few audits. The IRS has recently focused its limited audit resources on higher-income taxpayers who already voluntarily comply with our tax laws. This has made the IRS audit much less effective and even less of a deterrent for most taxpayers. The IRS does have other deterrent measures in its tax enforcement…
Signature Not Required on Tax Return for Criminal Liability
One of the requirements for a document to be a tax return is that it is signed by the taxpayer under penalties of perjury. Most tax forms that are intended to be tax returns include a declaration at the bottom that includes the penalty of perjury language. But most tax returns today are filed electronically.…
When the IRS Comes Knocking: Addressing Tax Fraud
Tax fraud typically involves neglecting tax responsibilities, such as by not filing returns or evading tax payments, or engaging in deliberate actions to obstruct the IRS’s assessment or collection of taxes. The compliance problems that are later found to be tax fraud usually involve actions that pyramid over time. This timing issue arises as repeated…
Blunt Truth: Paying Taxes on Illegal Income
When a taxpayer makes money from something like selling marijuana, they still owe taxes on that income. The law requires the marijuana profits to be reported for income tax purposes. This type of income is usually only reported and tax collected if the IRS catches wind of the illegal activities. This is often limited to…
When a Fictitious Business is Reported on Your Tax Return
So you reported a fictitious business on your income tax return. The fictitious business resulted in a tax loss and, maybe, you got a large tax refund from the IRS as a result of it. It’s a fraudulent tax return. The IRS sends you an IRS audit notice. What do you do? The answer varies,…
Calculate Tax Loss for Criminal Tax Cases: Why It Matters
In the realm of criminal tax cases, time is of the essence. The criminal process operates at a markedly faster pace than the civil tax assessment process, creating a situation where defendants often overlook the precise amount of the tax loss they are accused of. While the tax-related details, including the actual amount owed, may…
The Tax System as “a Game of Monopoly”
If you are a small business owner or an individual who works or even claimed a deduction for a child on your tax return, the IRS may go to great lengths to scrutinize your tax filings. This is particularly true if you are successful and earn any income. The more successful you are, the more…
The Crime-Fraud Exception to the Attorney-Client Privilege
Our laws protect certain communications. This includes communications with doctors, religious advisors, spouses, and even attorneys. When it comes to Federal tax matters, communications with tax attorneys are usually at the forefront. The IRS often seeks information about these communications to help it figure out how the taxpayer structured their affairs. The attorney-client privilege is…
When Clients Testify Against Their Tax Preparer
The IRS has been focusing on examinations of tax return preparers. These examinations often result in the imposition of civil penalties under Section 6694 and 6695. But they can also result in criminal liability for the tax return preparer. The criminal sentencing guidelines can be problematic for tax return preparers. The Keleta v. United States,…