Video instructions and help with filling out and completing Will Form 843 Assessed

Instructions and Help about Will Form 843 Assessed

Welcome to this installment of clarifying tax situations with attorney and CPA David W + Ames ok the subject of this video is what can happen if the government thinks that I committed tax crimes the short answer to this question is on top of the tax that you should have paid when you get caught cheating plus the penalties and interests that attach to that potentially a 75% fraud penalty so if they hit you for $1,000 of additional tax best case scenario is you wind up paint one thousand seven hundred fifty bucks you stand the potential risk of criminal prosecution that's a short answer the ramifications here go way beyond the simple penalties and interest that you ordinarily face in the standard civil audit ramifications are way beyond that for many of my clients the concept of having to spend time in the federal prison is almost unimaginable to them and the stress and anguish they feel when faced with the potential for criminal prosecution is indescribable what haunts most of them is the shame humiliation and the social authorization that they assume will be coming their way as they're convicted of a tax crime moreover a lot of my clients have professional licenses their attorneys their doctors their CPAs if they get criminal prosecution on their record that's it for their license they're no longer a doctor they're no longer a CPA they're no longer return and what a lot of my clients find really horrific is that they never realized that the government is going to publicize the fact that they're being criminally prosecuted that's part of how the system works they want as much publicity surrounding a prosecution as possible this is the one one of the reasons that kind Western stars and movie stars are at high risk for criminal prosecution because the publicity that would stem from prosecuting them you know Wesley Snipes that's one of the most famous prosecutions around is because he was a very famous very talented actor Al Capone one of the most famous prosecutions of all time for tax crimes so the government looks to publicize the heck out of an issue to get as much deterrent effect as they can the system functions on fear they have to keep the average American running scared that they might be criminally prosecuted to get people to pay the taxes they should have paid in the first place historically if you looked at what governments did that are people when they caught them cheating on taxes I mean in Middle Ages people were beheaded or burned at the stake for cheating on their taxes my plants usually find it very helpful to understand why the government is interested in criminally prosecuting them well let me explain the following quotations are right out of the US Attorney's manual the tax division of the US Attorney's Office they're the ones that actually prosecute people for federal tax crimes the first goal here is that the government is trying to preserve the integrity of the voluntary tax filing system that we have through vigorous and uniformed criminal prosecutions the idea here is to criminally prosecute those caught cheating on their taxes to deter the rest of the good folks out there from doing the same to achieve the maximum deterrence the government must go after broad balanced and uniform criminal tax enforcement by broadened balance the government is trying to spread out the prosecutions among all economic statuses the rich and the poor and across all vocational statuses they don't want to hit just lawyers doctors and accountants they're going to spread it out to engineers restaurant owners this they're going to spread it out across all areas of palmer's they're also going to try and spread the prosecution's out over various geographic locations that won't all be in one area of the country they're going to be spread out and they're not just going to come after one type of tax law violation they're going to try and spread out those prosecutions to lots of different tax law violations I deal much more often with just the mere threat of criminal prosecution than an actual criminal prosecution what I can tell you is this having the potential for criminal tax charges to be hanging up your head is a horrific nightmare for anybody who finds themselves in that situation the last thing you need is to be judged by the person who's providing you help my staff has been training not to be judgmental I'm not judgmental I think they're for the grace of God go I and the staff has been trained the same just the mere allegation that you may have committed tax crimes coupled with an investigation is enough to have crushing financial emotional and reputational implications on your life these effects can be permanent even where you're investigated later found innocent an allegation has teeth whether it's true or not and the most scary thing that I tell my clients and this is the truth sophistica Lee has been proven if the Criminal Investigation Division of the IRS begins an investigation against you they have an Eaton percent conviction rate what's really hard to deal with here is the range of possible ramifications where you're in a situation where you're being investigated for tax fraud and you may or may not have cheated at best you're looking at a civil fraud penalty of seventy five percent which I've already mentioned at worst you're looking up to five years of incarceration for tax crimes coupled with faience s highest half a million dollars plus you will be charged for the cost that the government incurs in prosecuting you for the tax crime plus restitution for all the taxes that you should have paid in the first place that you abated and here's the double whammy that most of my clients have the hardest time conceptualizing after the