IRVINE,
Calif., July 3, 2024 /PRNewswire/ -- According to
a Department of Justice press release, a Michigan business owner who had previously
been convicted of tax evasion, failing to file a tax return, and
obstructing the IRS was sentenced to serve two years in a federal
prison. This story highlights the severe consequences that can
result from a criminal tax conviction. If you have failed to file a
tax return for one or more years, or have taken a position on a tax
return that was knowingly false, it is in your best interest to
contact an experienced tax defense attorney as soon as possible to
determine the best path to get right with the government.
Marijuana Dispensary Proprietor Underreported Income,
Attempted to Obstruct IRS
This news is a follow up to a blog that we brought you last
year. You may recall from our previous story, Ryan Richmond, from Bloomfield, Michigan, was the owner of Relief
Choices, LLC, a marijuana dispensary operating in Warren, Michigan. During a period from 2011 to
2014, Richmond took measures to obscure the true extent of his
business earnings. He implemented a strategy involving Relief
Choices covering its operational expenses predominantly in cash.
Furthermore, to mask the genuine business gross receipts, he
channeled customer credit card transactions through a separate,
unrelated third-party bank account.
Richmond's illegal behavior didn't end at simply evading taxes.
In 2015 and 2016, when the IRS initiated their criminal tax
investigation, Richmond employed deceptive tactics to hinder their
investigation. He particularly misled an IRS auditor who was
looking into his personal income tax records. He was elusive
regarding his awareness of, involvement in, and the profits he
amassed from the Relief Choices venture. The result of Richmond's
actions were significant, causing a tax loss to the IRS exceeding
$1.15 million.
In addition to being sentenced to 24 months in federal prison,
Richmond was ordered to serve one year of supervised release, which
commences upon his release from physical incarceration. Lastly,
Richmond was ordered to pay over $2.7
million in restitution, representing the amount of tax loss
that he caused.
Working with a Tax Attorney to Rectify Past Tax
Issues
The defendant in the above case likely now fully understands the
repercussions that can result from a criminal tax investigation,
prosecution, and conviction. The ultimate goal is to not have an
issue with the IRS make its way into a courtroom. It is generally
best for the taxpayer if past noncompliance is rectified well
before IRS Criminal Investigations is involved.
If you have filed a tax return that under-reported taxable
income, overstated deductible expenses, or have failed to file a
tax return altogether, it is in your best interest to seek the
guidance of a seasoned tax attorney. Together, you will work to
identify the pertinent facts at play in your case and work together
to develop a path forward to come into tax compliance, without you
having to go up against the IRS alone.
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.
Our office technology allows clients to meet virtually via
GoToMeeting. With end-to-end encryption, strong passwords, and
top-rated reliability, no one is messing with your meeting. To
schedule a reduced rate initial consultation via
GoToMeeting follow this link. Call our office and request a
GoToMeeting if you are an existing client. We also now offer a
convenient scheduling option, where you can secure David W.
Klasing, Esq M.S.-Tax CPA's undivided attention for a 4-hour
consultation at any of his satellite offices.
Here is a link to our YouTube channel: click here!
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Public Contact: Dave Klasing Esq.
M.S.-Tax CPA, dave@taxesqcpa.net
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