IRVINE, California., 27 August 2024 /PRNewswire/ — According to a Press release from the Ministry of JusticeA Connecticut A man recently pleaded guilty to evading taxes on income he earned from fishing. This story describes the potential consequences a taxpayer can face if he or she willfully violates federal income tax laws. If you have not filed a tax return for one or more years, or have filed an incorrect tax return, you should Contact an experienced tax attorney to determine the best way for you to meet your obligations and avoid some of the negative repercussions that the defendant will surely face in the following case.

Defendant earned significant income from fishing but failed to declare it in his tax return

Court records show that Brian Kobus from Durham, Connecticutpleaded guilty to tax evasion in 1.4 million US dollars earned as a commercial fisherman from 2011 to 2013 and 2017 to 2021. Kobus did not file federal income tax returns or pay the taxes he owed, but instead cashed his paychecks and used the money to finance his lifestyle. The illegal activity resulted in a tax loss of over 375,000 US dollars.

Kobus faces a maximum sentence of five years in prison for tax evasion. The verdict is expected later this year. Kobus could also be given a suspended sentence that begins after the end of his sentence. Finally, he could be ordered to reimburse the state for the tax loss he caused.

Understanding the harsh penalties for tax evasion

This case highlights the serious consequences of tax evasion. Kobus’s activities resulted in a trial and will most likely result in a prison sentence. The penalties underscore the importance of complying with federal and state tax laws and the serious consequences of attempting to evade them.

This case brings a revelation that can turn a simple misdemeanor of failing to file a tax return into a serious offense of tax evasion. The “espionage evasion” doctrine is essentially one of the ways to commit tax evasion. It is a legal theory that makes a taxpayer criminally liable if he intentionally (1) fails to file a tax return and (2) his action is coupled with a “positive act of evasion,” such as actively concealing or misleading the government. In Spies The Supreme Court identified at least seven examples of conduct that constituted positive acts of avoidance. The Court stated: (We) “think that (the) positive intentional attempt can be inferred from conduct such as (1) maintaining double-entry bookkeeping, (2) making false alterations, (3) false invoices or documents, (4) destroying books or records, (5) concealing assets or covering up sources of income, (6) handling one’s affairs to avoid the record-keeping customary in transactions of this nature, and (7) any conduct the likely effect of which would be to mislead or conceal.” Spies v. United States 317 U.S. 492, 499 (1943).

What is a “positive act” for purposes of the Spies evasion doctrine? It can be any number of things, including but not limited to making a false statement to the IRS, either verbally or in writing. Importantly, the statement can be made before, after, or at the same time as the tax return is filed. For example, a taxpayer commits “positive” tax evasion if he or she has not filed his or her income tax return, if he or she lies to the IRS about his or her income. Accordingly, a taxpayer who lies about his or her income can also face jail time and severe penalties.

If you have violated tax regulations, it is important seek the support of an experienced lawyerAn experienced tax attorney can help you navigate the complexities of the tax legal system, develop a strategy to resolve outstanding issues, and work toward reconciliation with the state.

How to restore compliance without exposing yourself to prosecution by the tax authorities when you have a long history of obvious fraud/non-filing

If you have not filed a tax return for one or more years, or have made a position on a tax return that could not be supported during 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 the best way to recover your federal or state tax obligations without facing criminal prosecution.

Note:

As long as a taxpayer who has intentionally committed tax offenses (possibly including unfiled foreign tax returns in connection with the positive avoidance of U.S. income tax on offshore income) self-reports the tax Fraud (including a sample of unfiled tax returns) through a domestic or foreign voluntary disclosure before the IRS has initiated a tax audit or criminal tax investigation/prosecutionthe taxpayer can usually be successfully brought back into tax compliance and receive an almost guaranteed exemption from criminal tax prosecution and at the same time often receive a Cancellation of civil penalties that would otherwise be incurred.

It is Imperative that you have a Experienced and reputable criminal defense attorney for tax criminal cases to guide you through the voluntary disclosure process. Only a lawyer has the attorney-client privilege and the work product privileges that to prevent the professional you have hired from being forced to testify against you, in particular if they have prepared returns that need to be corrected in the event of a subsequent criminal tax audit, investigation or prosecution.

Over and beyond, only one lawyer can prompt you to make a voluntary disclosure without you acting as an attorney without permission (which is a criminal offense in itself). Only a lawyer specializing in defense in tax criminal cases fully understands the risks and rewards of a voluntary disclosure and knows how to protect you if you do not meet the requirements for a voluntary disclosure.

As uniquely qualified and extensively experienced criminal tax defense attorneys, Kovel CPAs and EAs, our firm offers a one-stop shop to efficiently achieve the optimal and predictable results that Protect your freedom and your assets at the same time. Check out our testimonials to see what our customers say about us!

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