Case Studies
TAX AUDITS & APPEALS
Accused of Failing to Report Income
Not Guilty
This client had been accused of failing to report income from a grocery store business and overstating the cost of goods sold. The IRS alleged the client owed over $800,000 in back taxes on account of these errors. By completely reconstructing the client’s books and records, I was able to show the IRS had not only incorrectly determined that my client had under-reported his income, but also incorrectly calculated the client’s inventory.
The IRS subsequently settled the case in favor of the taxpayer.
Accused of Incorrect Accounting Methods
Not Guilty
IRS auditors attempted to assess over $300,000 in taxes on the basis that the taxpayer had incorrectly used the cash method of accounting. Upon further review and discussion, I convinced IRS Appeals Officers that the client had in fact used the cash method of accounting correctly.
The case was dropped with my client owing nothing.
Accused of Evading State Tax Law
Not Guilty
The State of California had asserted that a client’s business operations involved a leasing activity that was subject to a sales or use tax. I successfully argued that the client’s business was actually a services business NOT subject to sales or use tax.
The case was dropped with my client owing nothing.
CRIMINAL TAX CASES
Target of Grand Jury Investigation
Not Guilty
I recently assisted a client who was the target of a grand jury investigation in a nationwide tax avoidance scheme. With my legal knowledge and resources, I successfully arranged for his client to avoid certain criminal prosecution by cooperating with federal prosecutors in their investigation.
Client avoided prosecution through cooperation.
Accused of Intentionally Filing Tax Return Incorrectly
Not Guilty
I successfully convinced prosecutors to dismiss criminal tax charges against my client. The charges were dropped on the basis that, even though the client’s tax return might not have been correct, there was no way that the taxpayer could have understood the alleged violation of the tax law. The particular provision in question was so complicated that most lawyers, including the prosecutors, could not agree on its application.
The case was dropped with my client owing nothing.
Accused of Giving False Financial Disclosures to IRS
Not Guilty
I was representing a taxpayer under investigation for giving false financial disclosures to an IRS tax collection employee. The client had been recently released from federal prison for tax fraud, so the IRS criminal investigators treated the case more seriously than they otherwise would have. I persuaded the IRS investigators that the financial disclosures (on IRS tax forms), and particular assets omitted from the disclosures, were too complex for the taxpayer to fully understand. Therefore, the government could not prove beyond a reasonable doubt that the omission of assets from the client’s financial disclosures was willful.
The case was dropped with my client owing nothing.
Accused of Criminal Tax Fraud
minimized fines and penalties
In a case where the taxpayer plead guilty to criminal tax fraud, I was able to convince prosecutors to include a provision in the plea agreement that provided the criminal restitution would be binding and final for all purposes; including civil purposes. Normally, after a taxpayer is convicted of criminal tax fraud, the case is sent to the civil division of the agency for assessment of additional civil taxes, interest, and civil penalties. I helped the client avoid the normal, later civil case and possibly additional penalties, by getting this provision added into the criminal plea bargain.
I successfully fought to minimize the legal consequences my client would have to face after a guilty plea.
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