From the tax law firm of David W. Klasing


However, not all cases are so simple and dry. Whether you have concerns about a future government investigation or if the IRS has already come knocking on your door, the criminal tax defense attorneys and dual-licensed CPAs at tax law offices in David W. Klasing may be able to help. To learn more about our various services, call us at our offices at (800) 681-1295.

IRS Annual Report Flags Enforcement Actions Against Specific Tax Crimes

Each year, the IRS Criminal Investigations Division (IRS-CI) releases a report that provides information on the investigative strategies and goals they have pursued recently and how they intend to move forward. before. This year’s report highlights a few key areas where the IRS has stepped up its efforts, including pandemic fraud and cybercrimes such as cryptocurrency evasion schemes.

The report is more than just a press release to let the public know what the IRS is doing. It is also meant to be a warning to potential perpetrators that the IRS is not yet done in these areas. The government will likely audit many small businesses that have used the COVID-19 relief measures or are substantially dealing with cryptocurrency. If you’re concerned about increased government action that could affect you or your small business, contact tax attorneys and dual-certified CPAs at tax law offices in David W. Klasing as soon as possible.

IRS-CI targets COVID-19 relief programs

One such area of ​​interest that has only recently become prevalent is fraudulent schemes designed to take advantage of government relief efforts related to the pandemic. Between the current administration and the previous one, several tax breaks and favorable loan opportunities have been created to help keep small businesses open in the face of the challenges of quarantine and social distancing.

However, these opportunities have motivated some tax offenders to engage in fraudulent practices to obtain more than their fair share of relief. The IRS listed a number of examples of cases where they uncovered these schemes and secured guilty convictions from perpetrators across the United States.

The majority of IRS-CI charges involving COVID-19 relief fraud involved paying taxes from small businesses improperly obtaining loans through the Paycheck Protection Program (PPP). The PPP was originally intended to provide employers with favorable loan rates so that they could continue to meet their wage obligations while being affected by quarantine measures.

However, many taxpayers have applied for PPP loans for their own benefit, which they obtained by making false or misleading statements in their applications about the number of employees in their business. The IRS also cited a number of cases where business owners who received PPP loans used the loans for their own benefit instead of distributing them to their employees.

The examples in the IRS report represent the most excessive and egregious schemes they have uncovered. These cases concerned massive sums of money diverted to buy luxury houses and cars. However, all of the case examples had one other thing in common: they all ended up in jail.

IRS-CI Annual Report Focuses on Cybercrimes and Cryptocurrency

Another emerging area that the IRS is quickly recognizing as a threat is cryptocurrency. Although cryptocurrency is a very popular and lucrative investment, it can also be used to pursue illicit means of financing criminal enterprises and tax evasion. The report proudly claims that the IRS-CI Cyber ​​Crime Unit was responsible for the seizure of approximately $3.5 billion of crypto assets during the year covered by the report, which would represent 93% of the total value captured by the IRS-CI during the same period.

One area the IRS was keen to mention in the report was the role cryptocurrency plays in promoting cyber attacks such as ransomware. Ransomware is a type of computer virus where the attacker can grab the contents of the computer and lock it down until their demands are met. These demands are usually a certain amount of money paid via cryptocurrency to ensure that the funds cannot be traced back to the attacker.

The IRS has also identified cybercrime schemes involving payments to dark websites such as Silk Road and money laundering for drug cartels. If your business uses cryptocurrencies for large transfers, you should plan to hear from the IRS. To that end, we recommend that you get your finances in order with the help of our dual-certified tax lawyers and CPAs.

David W. Klasing Tax Law Offices Can Defend You Against the IRS

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 by a IRS or State Tax Administration Audit, eggshell check, reverse eggshell audit, Where criminal tax investigation, it is in your interest to contact a experienced tax lawyer to determine your best way to return to federal or state tax compliance without facing criminal prosecution.

To note: As long as a taxpayer who has deliberately committed tax offenses (including possibly unfiled foreign information returns coupled with positive evasion of u.s. income tax on Offshore Income) self-reports tax evasion (including an unfiled tax return scheme) through a national Where voluntary disclosure abroad before the IRS commenced an audit or criminal tax investigation/prosecution, the taxpayer can normally be successfully brought back into tax compliance and receive an almost guaranteed pass for criminal tax prosecution and simultaneously often receive a pause on civil penalties that would otherwise apply.

He is imperative that you hire a experienced and reputable tax defense lawyer to guide you through the voluntary disclosure process. Only a lawyer has the Attorney-client privilege and Work product privileges It’s okay prevent the very professional you hire from being potentially forced to become a witness against you, in particular when they have prepared the declarations which must be modified, during a tax audit, an investigation or a subsequent criminal prosecution.

What’s more, only a lawyer may engage you in voluntary disclosure without engaging in unauthorized exercise of law (a crime in itself). Only a trained criminal tax defense attorney fully understands the risks and benefits of voluntary disclosures and how to protect yourself if you do not qualify for voluntary disclosure.

As a qualified and experienced person Tax lawyers in criminal tax defense, Kovel CPAs and EAs, our company provides a one-stop-shop to efficiently achieve the optimal and predictable results that protect your freedom and net worth simultaneously. See our testimonials to see what our customers are saying about us!

The fight to protect you, your net worth, your very freedom, or your small and medium business starts with us. We can put you in touch with one of our dual-licensed tax defense attorneys and CPAs when you call the tax law offices of David W. Klasing at (800) 681-1295 or visit online today.

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Public contact person: Dave Klasing Esq. MS-Tax CPA, [email protected]

SOURCE Tax Law Offices of David W. Klasing, PC


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