U.S. Tax Court Issues Opinion on Filing False Returns

Falsifying a tax return can lead to big penalties. Not only can you be ordered to pay the full tax amount owed plus interest, but you can also be ordered to pay fines and restitution. That’s exactly what happened to one North Carolina man.

The man entered into a plea agreement in which he would admit to guilt for falsifying tax returns and would pay certain charges and restitution, in addition to the tax owed. In exchange, he would get a sentence with a lower range than what is outlined in the U.S Sentencing Guidelines. He pled guilty to falsifying returns for 2005 and 2006, and he was sentenced to 27 months in prison and one year of supervised release for each count. He was also ordered to pay restitution of $507,995.

Dollar With Clock

The courts waived additional interest and penalties based on the man’s ability to pay, and it ordered him to begin making payment of $100 per month starting 60 days after release from prison.

The IRS sent multiple notices to the man notifying him of the amount owed and of its intent to collect on assets such as tax refunds and Social Security benefits. The man applied for an alternative collection method, but he was told that he would have to file several years of recent tax returns in order to be eligible. He claimed that the IRS did not have the right to collect federal tax from him and that he mistakenly checked the box asking for an alternative collection method.

The man asked for an appeals hearing on the issue, and it was decided that he did owe the tax and restitution to the IRS. The U.S. Tax Court reviewed the case and upheld the IRS’ authority to collect both previous tax owed and the restitution ordered, through levies and other means.

Working with a Tax Collection Attorney

You know that you should be transparent and forthcoming on your tax returns, reporting all income and assets that you are required to do so. However, you may feel tempted to do otherwise because of financial hardship or other reason, and you may feel like you can do it without getting caught. The IRS has complex systems in place to detect fraud and to uncover those who are trying to flout the law. Even if it takes some time to do so, you will get caught. And when you do, you can face serious penalties, including the loss of significant assets to pay back what you owe plus your restitution.

Never falsify a tax return. If you are having trouble paying what you owe, talk with a certified public accountant or a tax attorney to find ways to bring down the amount you owe or to work out a payment plan that you can afford. There are many ways to either bring down what you owe or to minimize the financial hardship you experience.

If you have already falsified a return, you should seek the help of an experienced tax attorney near Fountain Hills, even if you have not yet been discovered by the IRS. Taking proactive steps to deal with what you have done could help you reduce the consequences you face. Your attorney may be able to negotiate a better deal on your behalf if you come forward on your own, including getting you out of serving prison time. Coming forward on your own may also result in reduced fines. At any rate, talking with a tax attorney before you are contacted by the IRS gives you the benefit of time, allowing you to come up with the best legal strategy before the tax man comes knocking on your door.

Silver Law PLC may be able to help you if you have been accused of falsifying tax returns or some other wrongdoing. Our experienced tax attorneys have worked for both the IRS and for individual clients, so they know how these cases are managed on both sides of the aisle. They will work diligently to find the best legal strategies to defend you, with the goal of reducing your penalties and helping you rebuild your life as quickly as possible. Call us in Arizona today to talk with a tax attorney about your case.


Silver Law PLC

410 South Rampart Blvd, Suite 390
Las Vegas, Nevada 89145
Office: 702-318-7130

Silver Law PLC

7033 E. Greenway Pkwy, Ste 200
Scottsdale, AZ 85254
Office:(480) 429-3360

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