IRVINE,
Calif., July 11, 2024 /PRNewswire/
-- According to a Department of Justice press release, a
Texas man was recently sentenced
to serve more than three years in federal prison after being
convicted of federal income tax evasion. This story highlights the
severe consequences that can arise from intentional tax
noncompliance. 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 examination, it is in your best interest to
consult with an experienced tax defense attorney to discuss your
options to get right with the government.
Defendant Failed to File Tax Returns, Dodged the IRS Upon
Exam
Court records reveal that John L.
Petrone, a resident of Texas, was sentenced to 37 months in prison
for evading taxes on income that he earned from his kratom (an
herbal extract) business. Petrone did not file individual income
tax returns or pay income taxes from 2014 to 2019, causing a tax
loss of over $529,000. He attempted
to evade taxes by operating under different business names, dealing
in cash, and using business accounts for personal expenses. Petrone
also lied to the IRS during an examination and failed to pay
employment taxes as required by law.
In addition to being sentenced to serve 37 months in federal
prison, the defendant was also ordered to serve three years of
supervised release, commencing upon the end of his physical
incarceration. Lastly, he was ordered to pay nearly $530,000 in restitution.
Serious Penalties for Tax Evasion
This case highlights the severe consequences of tax evasion and
failing to comply with other federal tax laws. Petrone's actions
resulted in significant legal repercussions, including prison time,
supervised release, and substantial restitution. The penalties
underscore the importance of compliance with tax laws and the
serious consequences of attempting to evade them.
If you have failed to file a federal or state income tax return
for one or more years, or have lied on your tax filings, you should
strongly consider speaking with an experienced and seasoned tax
lawyer. Together, you will discuss your potential exposures and
establish a plan to bring you into compliance.
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!
Here is a link to our YouTube channel: click here!
See our Criminal Tax Law Q and A Library
See our Audit Representation Q and A Library
Public Contact: Dave Klasing Esq.
M.S.-Tax CPA, dave@taxesqcpa.net
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SOURCE Tax Law Offices of David W.
Klasing, PC