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The Baltimore Sun reported that the city's Police Commissioner Darryl De Sousa has been charged with three misdemeanors for failing to file taxes in 2013, 2014 and 2015. De Sousa has also been placed on leave pending the case's resolution, the article states.The Sun talked to Baltimore tax attorney Glen E. Frost, managing partner of Frost & Associates LLC, for his insights on the matter. Frost told the Sun that it is rare for the IRS to pursue charges against taxpayers for misdemeanors such as failure to file tax returns. He said it is more common for the agency to pursue felony charges against individuals for crimes such as tax evasion where a significant amount of money is owed to the government.
Frost added, that the IRS, however, does like to make examples out of notable public figures and that might have been what motivated them to file these criminal charges against Baltimore's police commissioner. Frost said individuals do have an option to avoid criminal charges by entering the IRS' Voluntary Disclosure Program, and typically in those cases, the IRS won't pursue a criminal investigation.
If taxpayers don't disclose that they did not file taxes, the IRS has other ways of discovering such as anonymous tips or agency audits. In most cases, Frost said, the IRS would first conduct an administrative investigation to ascertain whether a taxpayer did not file the taxes on time. The case would then be referred to the tax division of the U.S. Department of Justice (federal prosecutors) who would then recommend criminal charges, if necessary.
Typically, the subjects of these cases (taxpayers) know they are being investigated because there is quite a bit of back and forth before the actual indictment takes place, Frost said. But in De Sousa's case, the police commissioner did not learn about the charges until after they were filed. So, De Sousa did not have an opportunity to explain or file the missing tax returns. Frost said the IRS does narrow in on high-profile cases where they notice a pattern of criminal target. So, he said, it was natural for the agency to target someone like De Sousa, who had not filed taxes for three years.
Frost added that this indictment of the police commissioner further increases the scrutiny on the city's police department, which has already garnered significant attention from the U.S. attorney's office due to its current internal turmoil involving corruption and police misconduct issues.
About Frost & Associates LLC
Frost & Associates LLC represents individuals and businesses that are facing IRS audits, tax collection disputes with the government and other complex tax issues. Founding attorney and managing partner Glen Frost represents clients nationwide in collection, examination and appeals matters pending before the IRS and state taxing authorities.
He also represents clients in criminal and civil matters pending before the U.S. District Court and the U.S. Tax Court and provides tax-planning advice to clients on a wide range of issues. An active certified public accountant, Glen Frost has also testified as an expert witness, provided forensic accounting services, reconstructed income, prepared back tax returns, assisted clients for compliance with the IRS's Voluntary Disclosure Program and with FBAR reporting requirements.
Source: http://www.baltimoresun.com/news/maryland/baltimore-city/bs-md-irs-criminal-charges-20180511-story.html
Contact Info:
Name: Baltimore Tax Lawyers
Email: Send Email
Organization: Baltimore Tax Lawyers
Address: 400 E Pratt St Baltimore, MD 21202
Phone: (443) 743-3381
Website: https://www.baltimoretaxlawyers.org/
Release ID: 359030
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