A man who conducted seminars in the United States and Canada regarding commercial real estate investment has been convicted of multiple counts of tax evasion. According to tax department officials, the man failed to file income tax returns between the years of 2001 and 2007. The man’s income for the period of time was reportedly $3.6 million and resulted in approximately $213,000 in unpaid taxes. In addition to his seminar work, he also worked for the Trump Organization as an independent contractor.
The man pleaded guilty to five charges, which are classified as class E felonies. His jury trial was scheduled just a few days later at the time of the plea. After the government began its investigation, the man filed the delinquent tax returns. He faces a potential maximum sentence of four years for each charge.
Nobody likes paying taxes. However, the outright avoidance of paying taxes is eventually going to attract the attention of tax authorities. Who knows how this case might have turned out had the man been proactive about admitting his mistakes or consulting with an attorney well in advance of the time that the government would be able to catch on to his scheme.
Tax evasion is a serious offense that a person is charged with if he or she knowingly violates the tax code by failing to report income, capital gains or other information that would result in tax liability. If a person is convicted of tax evasion, he or she can face years in prison and thousands of dollars in fines. However, a tax attorney may be able to assist a person with complying with the tax code before an investigation ensues in order to avoid serious ramifications.
Source: Long Island Exchange, “Real Estate Seminar Instructor Convicted of Felony Income Tax Charges,” Nov. 23, 2012