IRVINE, Calif., Aug. 28, 2024 /PRNewswire/ -- According to a Department of Justice press release, a Florida man has pleaded guilty to evading nearly $2.4 million in taxes on income earned from his business. This case demonstrates the severe consequences of attempting to fraudulently conceal income from the IRS on your personal or business tax returns. If you have filed a tax return that was not truthful or have failed to file a tax return for one or more years, it is in your best interest to discuss your case with an experienced tax defense attorney.

 

Defendant Concealed Income and Assets for Over a Decade

Court records reveal that Roger Whitman, 76, manufactured and sold medical equipment, generating millions of dollars in gross receipts between 2002 and 2018. Despite the large amount of taxable income, Whitman had not filed an individual income tax return or made any tax payments since 2000. In 2012, the IRS assessed nearly $800,000 in taxes for tax years 2002 through 2009. To conceal his income and evade IRS collection efforts, Whitman created a trust with his girlfriend as trustee, who then opened two bank accounts in the trust's name.

Whitman directed his business income into these trust accounts, using the funds to cover personal expenses while shielding his income from the IRS. In July 2019, he took further steps to obstruct IRS efforts by creating a new entity to operate his business. His actions resulted in a tax loss of more than $2.4 million to the IRS.

Whitman is scheduled to be sentenced on Nov. 13, where he faces up to five years in prison. Additionally, he may be sentenced to serve a period of supervised release upon the completion of any physical incarceration. Lastly, he may be ordered to pay restitution to the IRS, representing the amount of tax loss that he caused.

Getting Back into Compliance Without Facing Criminal Tax Prosecution Where You Have a Long History of Blatantly Cheating / Non Filing

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!

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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, CarlsbadSacramento. 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.

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Public Contact: Dave Klasing Esq. M.S.-Tax CPA, dave@taxesqcpa.net

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