19.02.2019
The Most Aggressive Tax Representation Allowed by Law
No comments
A Brooklyn, New York, resident pleaded guilty on Friday to 42 counts of an indictment charging him with 18 counts of wire fraud, 22 counts of aggravated identity theft, one count of conspiring to commit aggravated identity theft, and one count of aiding and assisting the filing of a false tax return, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Richard P. Donoghue for the Eastern District of New York. According to court documents, Bamgbala, the owner of Kaybamz Inc., a tax preparation business located in Brooklyn, New York, used stolen Social Security Numbers to file false tax returns with the Internal Revenue Service (IRS) to obtain fraudulent refunds.  The superseding indictment also alleges that Bamgbala and others conspired to deposit the unlawfully obtained tax refund checks into a specified bank account to obtain the cash value of those checks, and created fraudulent IRS forms and New York State identification documents to facilitate the scheme. Bamgbala faces a mandatory minimum sentence of two years in prison for each count of aggravated identity theft, a maximum sentence of 20 years in prison for each count of wire fraud, a maximum sentence of five years in prison for each conspiracy count, and a maximum sentence of three years in prison for the aiding and assisting in the filing of a false tax return count. He also faces a period of supervised release, restitution, forfeiture and monetary penalties. Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Donoghue commended special agents of IRS Criminal Investigation, who conducted the investigation, and Trial Attorneys Mark McDonald and Eric Powers of the Tax Division, who are prosecuting the case. Are You in Trouble with the IRS or State? To schedule a free, legally privileged consultation with a Federal Tax Practitioner and Attorney in our conveniently located New York City office call (212) 974-3435 or contact us online. *Same day and emergency appointments are available Monday through Friday.  ✔  Unpaid income, sales and payroll taxes.  ✔   We negotiate excellent re-payment plans with the IRS and State. ✔   Missing tax returns prepared and filed within 48 hours, guaranteed.  ✔  Suspended passport / suspended drivers’ license. ✔  Civil and criminal tax representation. ✔  Income and sales tax audit.  ✔  Department of Labor. ✔  Workers Compensation.

     

Just the FactsFelony Charges in Criminal Tax - Attempt to Evade or Defeat Tax (26 U.S.C §7201)

 

Tax evasion is when a taxpayer willfully (meaning voluntarily and intentionally) uses illegal means to avoid paying their taxes. This charge can apply to an individual or corporation and carries a punishment of up to $100,000 in fines ($500,000 for a corporation), or five years of imprisonment, or both. Examples of tax evasion include claiming a dependent when you do not have one, keeping two sets of books with unreported income, or concealing assets by placing them in someone else’s name. The statute of limitations for tax evasion is six years from the last act of evasion. It is important to note that while criminal tax evasion is a felony, this is different than failing to file your tax returns.

Fraud and false statements (26 U.S.C. §7206 part 1)

When a taxpayer signs their tax returns or other documents under penalty of perjury they are attesting to the fact that they have examined the return or documents and all accompanying schedules and attachments, and to the best of the their knowledge and belief, it is true, correct, and complete. Therefore, anyone submitting a tax return or other document that they know to be false can be found guilty of a false statement tax crime. Every false document that is signed by the taxpayer could result in a separate count of the offense and each count is a felony that carries a maximum three (3) year prison sentence and a fine of up to two hundred and fifty thousand dollars ($250,000 USD). In order for the government to secure a conviction, they must prove beyond a reasonable doubt that:

There is at least one incorrect item, the misstatement was material, AND the taxpayer signed the false document willfully.
Examples of Perjury include:

1. Underreporting income on your tax return
2. Overstating deductions
3. Improperly calculating capital expenditures and depreciation deductions
4. Reporting a false source of income, even though the amount was correct
5. Giving a false answer on the foreign bank account question on the tax return
6. Failing to list all assets on a 433-a
7. Providing false information on form 656

 

Aiding or assisting the planning of a false or fraudulent document (26 U.S.C. §7206 part 2)

In addition to perjury, any person who willfully aids or assists in, counsels, or advises the planning of a tax return or other IRS document that is fraudulent or false as to any material matter can be found guilty of the aiding and abetting prong of the statute. This is a three year felony that carries a maximum three (3) year prison sentence and a fine of up to two hundred and fifty thousand dollars ($250,000 USD). An individual does not need to sign the document in question to be found guilty of this crime and this statute is often is used to catch tax planners, accountants, or lawyers who help taxpayers cheat on their taxes. This happens when a tax planner and a taxpayer work together in agreement to plan a false tax return, or when a tax planner falsifies a taxpayer’s documents and that taxpayer is unaware of the falsifications. In these cases, the tax planner will be prosecuted heavily because they likely have done this with other taxpayers.

 

Willful failure to collect or pay over taxes (26 U.S.C §7202)

This pertains to any person with a legal duty to collect tax and willfully fails to collect or pay these taxes owed. This will often apply to a taxpayer who owns a business and does not pay their payroll taxes.

 

Laundering of monetary instruments (18 U.S.C. §1956)

This charge will be brought against anyone who attempts to make money which was obtained through an illegal act, look legitimate. For example, if a taxpayer makes money as a drug dealer but funnels that money through a business bank account owned by this same taxpayer, then withdrawals that money to pay his employees, this is considered money laundering. Money laundering can also be any financial transaction whose principal purpose is violating laws, including tax evasion or making false statements to the IRS. This felony carries a prison sentence of not more than 20 years.

 

False, fictitious, or fraudulent claims (18 U.S.C. §287)

If you make a false claim to the government on your taxes, especially in order to receive a refund, you may be charged with a felony.

 

Attempts to interfere with administration of internal revenue laws (26 U.S.C §7212)

Any attempt to interfere with the administration of the laws set in place by the IRS, or any agent acting under the U.S. tax code. For example, if a taxpayer sends a letter to a revenue agent threatening them, that is considered obstruction.

 

Conspiracy to commit offense or to defraud United States (18 U.S.C. §371)

This involves two people who knowingly or voluntarily agree to either commit a tax offense or to defraud the government out of tax money.

Misdemeanor charges in criminal tax

 

Willful Failure to file a return, supply information, or pay a tax (26 U.S.C. §7203)

Any person who is required to file a tax return or pay a tax due and willfully fails to do either of these things may face misdemeanor charges. Generally there are two types of non-filers: those who filed in the past and have since stopped, or those who are in protest of tax laws. If you have filed your tax returns previously and then stop, the IRS will likely prosecute. If you are protesting tax due, you will likely only face a misdemeanor, as long as there is not a large amount of press surrounding your protest and you are not acting aggressively and the dollar amount is very little.

 

Offenses with respect to collected taxes (26 U.S.C. §7215)

This pertains to any person who willfully delivers or discloses a document they know to be false or fraudulent. For example, if a taxpayer is undergoing an audit and provides a false document to the auditor, they are subject to being charged with a misdemeanor.

Before 

After

Print Print | Sitemap Recommend this page Recommend this page
© Selig & Associates