Claiming that he believed he was not required to file tax returns, a Nevada real estate broker is looking at some real time behind bars for his cheek.
The Criminal Investigation unit of the Internal Revenue Service (IRS) is perennially in pursuit of those who commit tax fraud, tax crimes, and other tax controversy. We all know the IRS is out there, and our law firm, in particular, is highly suited to defend unwitting victims of its criminal tax investigations.
When you read about a business owner who creates shell companies to hold income without reporting or paying tax, it seems abundantly clear that the individual had a pretty clear idea that taxes are owed. In addition, the defendant in this case, Mr. William Waller, Jr., used cash when possible and drained the equity in the only asset held in his name—his home. According to the Department of Justice, the reason for liquidating equity out of the home was to make it an undesirable target for the IRS to seize.
Despite these pretty obvious tax dodges, Mr. Waller claimed he was innocent of the criminal tax charges laid against him because he did not know he was breaking the law when he failed to file tax returns for almost 20 years. In this case, the defense seems laughable—which may be what the IRS thought when taking him to trial—but in other cases ignorance of the law can be a plausible defense.
If a defendant in a criminal tax matter can reasonably prove their actions were willful, or knowingly carried out with intent to defraud the government, a jury can consider good faith ignorance as a defense.
An area where this type of defense was more commonly used was by individuals charged with offshore tax violations, such as neglecting to file a report of foreign bank and financial accounts (FBAR). Today, the requirement to file an FBAR report is well known, and a claim of ignorance is probably not going to go too far to mitigate IRS penalties in a tax litigation.
For his part, Mr. Waller also stated at his jury trial that he had followed in the footsteps of other individuals known as “tax defiers.” He noted he had purchased educational materials sold by these individuals, including how to emerge victorious in a case of criminal tax fraud.
Unfortunately for Mr. Waller, the jury did not take the bait and he is going to prison for 6.5 years and is on the line for almost $1.5 million in restitution, along with probation. Word to the wise—if you ignore and evade your taxes for two decades— spend your cash on a really good IRS tax lawyer instead of a workbook by a tax cheat. It will be a lot more helpful.
Seasoned Criminal Tax Defense Attorneys Serving Local, National, and International Tax Clients
Robert J. Fedor, Esq., LLC delivers decisive legal representation on behalf of persons or entities facing challenges including criminal or civil tax audit, or other IRS action. Contact us or call 800-579-0997.
