When a business transaction is set up solely for tax motives and not to earn a profit, it could draw the attention of the IRS. If the agency determines that it is a sham transaction, you could face significant tax penalties or criminal charges. Examples of practices the IRS considers sham transactions include those designed specifically to produce losses for tax purposes, domestic and offshore warehousing corporations and others.
Massachusetts Tax Fraud Defense Lawyer
Theodore L. Craft has extensive experience justifying business transactions to the IRS and defending people accused of criminal tax violations. As a former attorney in the Office of Chief Counsel in the Boston office of the IRS, Mr. Craft investigated and prosecuted many people accused of sham transactions. He now uses his knowledge and experience defending people accused of alleged tax abuses.
For consultation about your case, contact Theodore L. Craft.
Substance Over Form
Many taxpayers make the mistake of relying solely on the form of a transaction when attempting to justify it to the IRS. They say that if the numbers on the paper say a transaction lost money, it lost money. But the IRS does not care about what the transaction purports to be — it looks at the underlying substance of the transaction and the intent of the taxpayer.
Theodore L. Craft is highly knowledgeable regarding "substance over form" transactions, and knows how to analyze them to determine their true nature. He will examine every detail of your case and work diligently to obtain the best possible result for you.
Domestic and Offshore Warehousing Corporations
The arrangement known as warehousing can also cause problems with the IRS. Let's say you have significant professional income and decide to set up an offshore corporation that recognizes that income as revenue, and which pays for your personal expenses. In this situation, the IRS could view the arrangement as a way to dodge taxes. You could face significant tax liabilities or even criminal charges.
Learn more about offshore tax arrangements and defense, or call 888-TAX-RISK (829-7475) today to talk with Theodore L. Craft.
Contact a Massachusetts Tax Fraud Attorney
For a consultation with an experienced tax attorney, contact Theodore L. Craft.