When a corporate executive or business owner uses corporate funds in a way that does not constitute business expenses, but rather expenses to enrich his or her personal life, the officer may face a tax issue with the IRS. A single transaction or even a series of smaller transactions may not be sufficient in the eyes of the IRS to warrant action. But if it detects a pattern or the transactions are large enough, it could classify those expense payments as constructive dividends. You could face either a higher tax liability or even a possible criminal indictment.
Boston IRS Tax Lawyer
If the IRS has sent you a notice of audit, or you believe that it is about to question the legitimacy of the corporate payments you have received your for expenses, you need to seek out a tax attorney as soon as possible.
Contact Theodore L. Craft for a consultation about your case.
Experience You Can Depend On
Theodore L. Craft, an experienced Boston IRS tax attorney, understands how to identify what really is a constructive dividend. He will work to resolve your problem in the most positive way possible.
If the activity in question does not truly constitute a constructive dividend, the goal will be to answer the IRS' questions in satisfactory manner so you do not incur any additional tax liability. Depending on the case, the IRS may view overlapping of business and personal expenses as a civil matter and simply adjust the amount of individual taxes due. However, if you are seen as looting the company for your personal gain, there is a good chance the IRS will seek a criminal prosecution. In the latter case, Theodore L. Craft will work to build an effective criminal tax defense for you.
Contact a Massachusetts Constructive Dividend Lawyer
For a consultation about a tax problem with Theodore L. Craft, contact the law firm.