Blog Posts in 2019

Cryptocurrency Holders: Beware Receiving IRS Letters

We have previously discussed the IRS using John Doe warrants to obtain information about U.S. taxpayers, as well as data analytics to target those with potential tax and criminal liabilities. In addition to targeting traditional tax cheats, the IRS is also looking at those holding cryptocurrencies in their financial portfolios. The IRS treats cryptocurrencies, also known as virtual currencies, as ...

Federal Civil Enforcements, Equity Receivers, and Parallel Criminal Investigations Ensnare Innocents

Recently, the public has learned a great deal about rampant abuses in federal and state civil forfeiture programs, particularly how they run afoul of liberties guaranteed by the Constitution. This has forced Congress to look into the programs to determine what changes are warranted. But a similar legal scheme resulting in far more egregious Constitutional violations has escaped Congressional ...

Trump, 'the Squad,' and the Government Regularly Taking Statements Out of Context

The dominant news story is about whether elected Congressional members or the President took statements out of context for political gamesmanship. Americans are not shocked at this spat between branches of government, but most are shocked to learn that the government uses this political tool against citizens in criminal courtrooms. When citizens speak to law enforcement, the government decides ...

Civil and Criminal Penalties for Failing to File Tax Returns

Income taxes are due to the IRS on or before April 15 th each year. That means, unless you requested an extension, you must file your tax return and pay your tax by April 15 th . An extension gives you time to file the tax return but taxes need to be paid by April 15 th . Civil Penalties The IRS can impose separate civil and criminal penalties for failing to file taxes and failing to pay taxes. ...

What Lawyers Need to Know About Currency Reporting

Many attorneys are unaware of the legal requirements to report currency transactions. On one occasion, I was speaking to about 90 attorneys on the legal requirements to report currency received in the practice of law. At the beginning of my presentation, I asked how many of the audience had knowledge of currency reporting requirements. There were four lawyers who raised their hands. Each of them ...

If you have not filed your 2018 taxes yet, you are not alone.

Although 10% of U.S. taxpayers requested a 6-month filing extension, they represent approximately 80% of the total adjusted gross income tax liability . In our practice, we have been able to help individuals who failed to file a tax return one year and thereafter were hesitant to file. The IRS has a Voluntary Disclosure Practice (VDP) which provides a means to potentially avoid criminal ...

CPA Sentenced to 5 Years in Prison for Aiding in the Preparation of False Income Tax Returns

The Justice Department, as well as the Internal Revenue Service Criminal Investigation Division, vigorously enforce Title 26 U.S.C. §7206 (2), which is commonly known as the "Preparer" statute. This law makes it a felony that is punishable by imprisonment for up to 3 years, and a fine of not more than $100,000 for any person who willfully aids, assists, procures or advises the preparation or ...

John Doe Warrants: The IRS Playing Peek-A-Boo With Hidden Assets For International Tax Liabilities

On May 1, 2019, the Department of Justice (DOJ) announced that it had successfully petitioned a federal court to permit the Internal Revenue Service (IRS) to serve “John Doe” summonses upon several major banking institutions in the United States. Legal documents often use “John Doe” or “Jane Doe” when referring to people whose true names and other identifiers are unknown to law enforcement. The ...

Obstruction of Justice: A Criminal Statute That Can Be Used or Abused

Obstruction of justice crimes are contained in Chapter 73 of the federal criminal code. There are twenty-two separate violations that range from obstructing a person authorized to serve a judicial writ issued by a court of the United States to murdering a witness to prevent testimony. This blog will concentrate on three of the obstruction of justice statutes contained in Chapter 73 that impact ...

Federal Prosecution for False Statements to Government Agencies: Use and Abuse

With the Mueller investigation and prosecutions, we see the latest example of the broad use of Title 18, United States Code, Section 1001. Under this law, it is a crime to make a false statement in relation to any matter within the jurisdiction of the executive, legislative, or judicial branch of the government of the United States. It is also a violation of the false statement statute to cover up ...