YOU MAY HAVE SEEN TODD SPODEK ON THE NETFLIX SHOW INVENTING ANNA
When you’re facing a federal issue, you need an attorney whose going to be available 24/7 to help you get the results and outcome you need. The value of working with the Spodek Law Group is that we treat each and every client like a member of our family.
Tax Compliance, IRS Voluntary Disclosure and Other Domestic Failures
Tax Compliance, IRS Voluntary Disclosure and Other Domestic Failures
You diligently paid your taxes for years, satisfying all the IRS’ disclosure or reporting obligations – or so you thought. Or maybe you were actually deliberately understating your tax filings. In truth, the U.S. Tax Code is complex and impossible to fully understand without careful study and consideration. That said, the complexity of the code itself is merely the starting point of the possible troubles. A full and thorough understanding of all obligations can only be achieved after a meticulous review of case law, IRS polies and guidance, and other secondary sources. Because of this, numerous taxpayers come to depend upon the advice and guidance of tax professionals.
Nevertheless, in spite of the taxpayer’s reliance on a professional, it is still the taxpayer who is responsible or held civilly and criminally liable for any willful misstatement or omission that may appear in his or her tax filing history. Moreover, consider that tax returns get filed under the penalty of perjury. By the time a taxpayer finally discovers that he or she has failed to meet certain obligations, he or she might already be in peril of years of non-compliance that can result in significant penalties, interest, fines, and – depending on conduct – the possibility of a criminal tax investigation and criminal tax penalties.
If the IRS Hasn’t Noticed My Tax Non-Compliance Over Past Years, Why Would They Notice it Now?
A range of changing circumstances and other reasons that explain why tax compliance failures including non-disclosure of accounts, assets, and sources of income can quickly become a pressing concern even in cases where you have reason to believe that you “got away with it”. Consider the following scenarios:
In the wake of the breakup of a marriage, one of the ex-spouses hires a forensic accountant for the divorce proceedings. The forensic accountant finds tax fraud by the other spouse. With this information, in hand, the ex threatens to disclose this information to the IRS and trigger a criminal investigation in an attempt to extort a bigger divorce settlement.
Someone who owns a rapidly growing business discloses a second set of books to a potential buyer. Unexpectedly, the potential buyer threatens that he or she will disclose this to the IRS and relevant state agencies in order to leverage a lower acquisition price.
The owner of a company is targeted for an audit by state regulators. The owner is concerned that the federal acts of fraud or other wrong-doing will be discovered in the audit.
Voluntary Disclosure Could Provide a Degree of Insulation Against any Criminal Penalties
A well filed and legally sufficient Voluntary Disclosures given to the IRS can furnish a taxpayer with a level of protection against criminal charges relating to his or her disclosed non-compliance. Simply put, the taxpayer will not be recommended for criminal prosecution. For efficient administration of the tax system, the IRS has long held that taxpayers who step forward voluntarily, make a full and complete disclosure, and agree to remit a penalty can avoid criminal penalties, including prison. However, the kind of disclosure that should be made should be reliant upon the taxpayer’s risk.
If you are looking for a lawyer that listens, is aggressive where needed, and holds his word above all else, Todd is the best pick. I had hired multiple attorneys prior to hiring the Spodek Group for a white collar case. The first thing that stood out to me was the cost, as anyone going through the process and dealing with the system, money was tight at that time - especially after hiring and firing multiple lawyers. The cost was not as high as others which was definitely a plus. Todd's intake process was also unlike other attorneys. He took the time to actually listen. He cared. He was trying to put himself in my shoes while I was explaining the situation to him and he really took the time to understand the whole situation. Other lawyers will give you 15 mins and send you a retainer agreement. Not Todd, I think he spent almost two hours with me as I was explaining everything.Not only was he great during the onboarding process, he was supportive and very informative through the entire plea process and eventually sentencing. After hiring him, I asked if I should hire a prison consultant, he told me to save my money as he would do everything they would. He was right and held up to his word. Later on I would hear from others that went with the prison consultants that they were a waste of money - I am glad I listened to Todd!When it came time for sentencing, two days prior to sentencing, the prosecutor tried increasing my proposed prison time by almost double - apparently a normal move. Todd and his team worked with me non-stop through the weekend prior to sentencing to ensure that I was not given additional prison time. Again, he took the time to listen and came up with a strategy to explain the case with great detail.Unfortunately, I did plead guilty as that was my best option. Todd and his whole team wrote up nearly 300 pages of a summary of what happened and why I should not be given prison time. If I breakdown the amount I spent with Todd versus the amount of work that I saw being done, I am shocked I was not charged four times as much. The other benefit was, a lot of criminal defense lawyers were just a single attorney with a paralegal or two. Todd had a team of people that I dealt with (5-7 people that I interacted with), but he was ALWAYS accessible. It would never take him more than an hour to reply unless he was in court.I was sentenced to prison and I was emotionally distraught. Todd and his team did whatever they could even after sentencing to make sure I was alright. He personally stayed in touch with my family to ensure I was doing alright and offered support to them. Most lawyers would consider the job complete at sentencing, not Todd.After prison, Todd still spent time with me to make sure I was on the right track and avoiding any potential risks in the future. He has also been giving advice on how to navigate probation etc and has not been looking at the clock for billing.Although I wish I had never been arrested in the first place, I am glad I had Todd and his team in my corner. Without them I likely would have had to spend a lot more time in prison than I did.Thank you, Todd, and the entire Spodek Law team, for helping turn what was a nightmare into a manageable situation!
I am immensely grateful to the entire team at Spodek Law Group for their unwavering dedication and exceptional expertise throughout my case. From our initial consultation to the final resolution, their professionalism and tireless advocacy made all the difference. Their strategic approach and attention to detail instilled confidence in me every step of the way.Thanks to their hard work and commitment, we achieved a truly favorable outcome that exceeded my expectations. Not only did they navigate the complexities of my case with precision, but they also provided invaluable support and guidance during what was undoubtedly a challenging time. I cannot recommend Spodek Law Group highly enough, especially attorneys Todd Spodek and Claire Banks; they are beacons of excellence in the legal profession.YSP.
Todd, Ralph and Alex are amazing. Helped my husband get from a double digit number with multiple charges to a single digit, by the time I blink he will be out. They very professional and help with all your needs. They dealt with my anxiety and worry very well and they understand that your family member needs to get home as soon as possible.
Believe every single review here about Alex Z!! From our initial consultation, it was evident that Alex possessed a profound understanding of criminal law and a fierce dedication to his clients rights. Throughout the entirety of my case, Alex exhibited unparalleled professionalism and unwavering commitment. What sets Alex apart is not only his legal expertise but also his genuine compassion for his clients. He took the time to thoroughly explain my case, alleviating any concerns I had along the way. His exact words were “I’m not worried about it”. His unwavering support and guidance were invaluable throughout the entire process. I am immensely grateful for Alex's exceptional legal representation and wholeheartedly recommend his services to anyone in need of a skilled criminal defense attorney. Alex Z is not just a lawyer; he is a beacon of hope for those navigating the complexities of the legal system. If you find yourself in need of a dedicated and competent legal advocate, look no further than Alex Z.
I don’t know where to start, I can write a novel about this firm, but one thing I will say is that having my best interest was their main priority since the beginning of my case which was back in Winter 2019. Miss Claire Banks, one of the best Attorneys in the firm represented me very well and was very professional, respectful, and truthful. Not once did she leave me in the dark, in fact she presented all options and routes that could possibly be considered for my case and she reinsured me that no matter what I decided to do, her and the team will have my back and that’s exactly what happened. Not only will I be liberated from this case, also, I will enjoy my freedom and continue to be a mother to my first born son and will have no restrictions with accomplishing my goals in life. Now that’s what I call victory!! I thank the Lord, My mother, Claire, and the Spodek team for standing by me and fighting with me. Words can’t describe how grateful I am to have the opportunity to work with this team. I’m very satisfied, very pleased with their performance, their hard work, and their diligence.Thank you team!
I recently had Spodek Law Group represent me for a legal matter in NYC and I am thoroughly impressed with their services.Alex Zhik secured the best possible outcome for my case.It was a seamless journey from the initial consultation to the resolution of my legal matter. From the moment I spoke to Todd about my case, his enthusiasm to help was evident, setting a positive tone for the entire experience. The efficiency and professionalism displayed by the team is commendable.A particularly noteworthy aspect of their service is their user-friendly portal to upload your documents/evidence. This not only simplified the process, but showcases their commitment to streamline the client experience.Lastly, in an industry where legal fees can often be a concern, I found their pricing to be very reasonable, making needing legal assistance feel accessible and stress-free.I am grateful for their support and wouldn't hesitate to turn to them again in the future.
Be warned: A voluntary disclosure should never be done without the guidance of experience criminal tax defense counsel and the use of a Kovel Accountant to protect the taxpayer’s constitutional rights, attorney client privilege and the attorney’s work product!
Actually, the U.S. tax system depends heavily, at least initially, on self-reporting by taxpayers (self-assessment). If the tax system was not initially based on self-assessment, the present levels of IRS staff would make the tax system unworkable. To further encourage taxpayer compliance, even after a period of purposeful compliance failures, the IRS has held a policy that confers certain benefits on individuals who voluntarily disclose their past acts or omissions of non-compliance, file accurate returns for the affected years still open to criminal statue (generally 5 years), and who remits a full payment or goes into an approved payment plan. As long as the disclosure is voluntary, accurate, complete, and legally sufficient, the IRS has a policy of holding back from recommending these taxpayers for criminal prosecution.
When Am I Able to Make a Voluntary Disclosure?
A Voluntary Disclosure must be timely to be effective. Should the taxpayer be reasonably aware of an investigation or facts and circumstances suggesting that the government has already uncovered the non-compliance that is the subject of the disclosure is not timely. Voluntary disclosures are considered to be timely when they are made:
Before the commencement of an IRS examination or prior to IRS notification to the taxpayer of an upcoming audit or examination.
Before any third-party whistle-blower supplies information regarding fraud or other noncompliance to the IRS.
Before the IRS acquires information regarding noncompliance from other sources.
As such, it is important to be timely when considering a Voluntary Disclosure. Nevertheless, taxpayers must not be hasty in their decision to file for Voluntary Disclosure since there are certain scenarios, such as illegal source income, where such a disclosure would be ineffective. Furthermore, taxpayers need to engage in a careful analysis of their behaviors and circumstances and in what ways they may be interpreted by an IRS examiner. Taxpayers should also consider whether a “noisy” or “quiet” disclosure is more appropriate for their unique tax situation.
What is the Difference between Noisy Disclosure and a Quiet Disclosure?
A voluntary disclosure is considered a noisy one because the criminal investigation division is contacted at the beginning of the process. A quiet disclosure would simply involve filing 5 years of amended returns at the client’s normal service center. The advantage of this latter method is that the taxpayer could be sheltered from the costs and stress of submitting to an audit that ordinarily comes on the heels of a loud voluntary disclosure. The disadvantage of a quiet disclosure is that it could be viewed as an admission of guilt without the expected pass on criminal prosecution that follows a loud disclosure. The critical decision to do a loud or quiet disclosure should not be made without experienced criminal tax defense attorneys.
Our Experienced Tax Professionals Will Guide You Through the Voluntary Disclosure Process
The seasoned, hard working tax attorneys and Kovel CPAs at our law firm can help concerned taxpayers understand what their options are. As soon as we have explained the process and the potential opportunities to mitigate the circumstances to the taxpayer, our experienced tax attorneys can take care of every step of the process. To schedule a consultation with a tax lawyer call us today!
