This blog recently reported on the fact that two famous real estate professionals and reality stars were facing federal tax evasion charges which they adamantly denied. Their case with the federal government remains pending.
Two reality starts that might be familiar names to residents of the Chicago area are now facing federal allegations of tax evasion and other federal charges. The couple has said that they are innocent of the criminal charges and have publicly blamed a former employee of theirs for the charges.
As is the case across the federal government, funding cuts have meant fewer agents in charge of pursuing criminal tax litigation in cooperation with federal prosecutors.
As this post has discussed before, a New Yorker can wind up in federal prison for tax evasion. Specifically, after a conviction for tax evasion, a court can order the guilty party to spend up to five years behind bars.
According to a report from the Stanford Graduate School of Business, many people may be moving to foreign real estate investments and even investments in artwork and other collectibles as a way of avoiding their tax obligations.
A previous post on this blog talked about how a family of prominent New Yorkers must now serve a few months in federal prison for their role in a fraudulent tax scheme. The scheme involved an offshore account from which the family would withdraw money under the table into their personal accounts without paying applicable taxes.
Following their guilty pleas, a federal judge informed four siblings in the New York area that they will have to serve a few months in federal prison. Additionally, they owe about $4 million in back taxes and penalties. They will have to pay this as part of their restitution in the criminal case.
The Internal Revenue Service is one of the most dreaded of all public institutions in America. When the IRS comes calling for civil tax concerns -- usually with a letter sent via regular US mail - a person's heart can sink. Were taxes left unpaid?
Although the tax code is complex, the IRS generally recognizes two types of tax evasion. It is important for taxpayers to be familiar with what those two types are and that there are legal protections available if they have been accused of committing tax evasion and are facing criminal tax charges.
With tax season behind us, many New Yorkers are no longer worried about this process until next spring. However, for some individuals, this may be the beginning of a legal matter that involves tax fraud. While criminal tax penalties are serious and the more talked about tax crime, civil tax fraud penalties could also plague an individual.