Every now and then I receive e-News bulletins from the IRS intended for tax practitioners. Recently, I received one which detailed that IRS’ triumph over a CPA who conspired with his client to hide income and submit fraudulent returns. The United States District Court for the Southern District of Florida found that the CPA and the taxpayer evaded income taxes, “by utilizing sham corporate entities, nominee bank accounts, and other surreptitious means to conceal business income and assets.” When the government found out about their little ruse, the parties involved were punished severely. The taxpayer was sentenced to 54 months in prison and the CPA was given 3 years of probation and had his license to practice before the IRS suspended for 3 years.
Good tax planning does not revolve around concepts such as dummy corporations, offshore tax shelter havens, or cooked books. The truth is that a well-conceived tax strategy has no need to hide anything. There are more than enough tax-saving avenues within the Internal Revenue Code that are perfectly legal if you know where to look. The key is to make the Code work for you.
Of course, there will always be people trying to cut corners and save taxes through illegal means and certainly not all of these people get caught. However, many of them do and the ones that carry on undetected still have to deal with the stress and anxiety that comes with wondering if today is that day that they must face the consequences of their actions. It is far better to consult a knowledgeable tax professional about a legitimate legal strategy that will both save taxes and allow you to sleep nights.
To help you in the creation of an effective tax strategy, contact Ourednik Law Offices.