Criminal Tax and Trust Fund Recovery Penalties

Description

Criminal Tax
In this session we will be focusing on the badges of fraud that IRS Civil and Criminal Investigation evaluate to determine if a fraud referral should be made or criminal tax charges brought. Additionally, we will describe the role of a Kovel accountant and when to refer a client to a tax attorney for legal advice.

Learning Objectives

What are IRS CI’s Priorities in FY 2023?
Describe when a civil tax case potentially rises to a criminal tax investigation.
Understand the role of a non-attorney practitioner in a criminal tax investigation.
Identify when to refer a client to an attorney.

Trust Fund Recovery Penalties

In this session we will define Trust Fund as it relates to business owners with employees and who is considered a responsible office if Trust Fund taxes are not paid. The failure to pay Trust Funds taxes may result in the IRS Collection Division to refer the responsible officers to the IRS Criminal Investigation Division for criminal prosecution if badges of fraud are present.

Learning Objectives

Define Trust Fund Taxes (IRC 6672).
Who is a Responsible Person?
What are the Willfulness Factors?
Preparing a Reasonable Cause Statement.

Contributors

David Gannaway, EA, MBA, CFE, CAMS, CVA

Mr. Gannaway joined J.S.Heldin November 2020 as an executive vice president in the Forensic Accounting & Economics Group. Since 2007, he has been providing tax controversy, litigation support, and expert witness services to attorneys and clients in both civil and criminal litigations in federal and state courts across multiple business sectors including construction, healthcare, financial services, and nonprofit.

In August 2019, Mr. Gannaway received the distinguished National Tax Practice Institute™ (NTPI®) Fellow designation as recognized by the National Association of Enrolled Agents as an expert in taxpayer representation before the IRS. He frequently represents individuals and business owners under audit and at appeals; prepares reasonable cause statements requesting penalty abatements; and all aspects of collection actions including Form 433A, negotiating installment agreements, and offers in compromise before the IRS and state taxing authorities. 

As a former IRS criminal investigation special agent and assistant special agent in charge of the New York Field Office, Mr. Gannaway has 20 years of experience in managing and unraveling domestic/international complex white-collar financial fraud schemes involving tax evasion, corruption, and money laundering. He works closely with attorneys as a “Kovel” accountant in defending individuals under investigation or who may have been indicted for alleged white-collar financial crimes.

Mr. Gannaway is a frequent speaker at industry conferences and a thought leader regarding civil/criminal income taxes, fraud schemes (prevention and detection), regulatory compliance, Bank Secrecy Act, and money laundering.

Description

Contributors

David Gannaway, EA, MBA, CFE, CAMS, CVA