When most people think about the issues that exist regarding tax matters, they are usually concerned about how much additional money they will need to come up with to cover amounts owed and financial penalties. While this may be the end result for some individuals, in other cases it can be more serious. In some situations a person may face criminal charges. Tax fraud is one of these situations.
As is the case with many other criminal accusations, if convicted, prison time could be an outcome. This life changing penalty is not a consequence that most people are prepared to face. Fortunately taking steps to defend oneself could have a great impact on the outcome of the case and even lead to an avoidance of criminal tax penalties completely. In other situations negotiation could result in more reasonable resolutions of the tax matter.
People from all walks of life could find that they are facing criminal allegations of tax fraud. Readers may be aware that reality star Mike “The Situation” Sorrentino, was recently indicted on charges of failing to properly pay taxes. More specifically, he was charged with:
- One count of conspiracy to defraud the United States.
- Failing to file a tax return in 2011.
The conspiracy to defraud the U.S. involved allegedly conspiring to underpay federal income taxes in conjunction with two companies he shared control of with his brother. Among other things, the income those companies received was allegedly dramatically under-reported in documents that were submitted to the IRS.
Sorrentino’s brother, who is also his manager, faces similar charges tied to the companies he also controls.
The reality show star faces serious consequences if convicted including fines totaling $350,000 and a maximum of four years in prison. As a result it is almost certain that he is working with a lawyer to craft a defense to the allegations.
Source: Courthouse News Service, “‘Jersey Shore’ Star Faces Taxing Situation,” Dan McCue, Sept. 25, 2014