Yes, You Can Get Criminal Penalties For Writing Off Personal Purchases As Tax Deductible Business Expenses

Certain parts of the country are famous for their extravagance and for their propensity for stretching the truth.  The people of New York and Miami are known for their fancy residences, although these tend to be penthouse apartments in condominium buildings in New York and sprawling mansions in South Florida.  No one in Los Angeles tells their real age except under penalty of perjury, and their physical appearance does not offer any clues.  Chicago is not known as the Windy City because of the weather but rather because of its inhabitants’ fondness for telling tall tales, whether as a matter of sales patter or ordinary conversation.  A Pittsburgh business man recently pleaded guilty for being untruthful about the purposes of a multimillion-dollar construction project.  If you are facing criminal charges for making false statements related to your business activities, contact a Pittsburgh white collar crime lawyer.

When Does Fudging the Facts on Your Tax Returns Constitute a Crime?

Claiming some of your personal expenses as business expenses is such a common practice that we all know someone who has done it.  Now that so many people work from home, it is easy to categorize part of your utility and Internet bills as business expenses, and it is difficult to verify what percentage of your Internet use goes to working from home and what percentage goes to watching old Saturday Night Live sketches on YouTube.  If the IRS suspects you of lying, usually they will audit your tax returns, meaning that you must answer for your income and expenses in more detail.  If the IRS catches you in a lie, you will probably just have to pay financial penalties.  Criminal penalties for tax fraud and tax evasion only apply if the court can prove that you told big lies about vast sums of money.

In the News

Joseph Nocito had a successful career as the CEO of Automated Health Systems.  He also successfully built a splendid mansion in the suburbs of Pittsburgh.  The palatial house bears the name Villa Nocci, and its amenities include a swimming pool, a pool house, and a bocce court.  It took six years and $30 million to build the house.  The trouble is that he wrote off a substantial portion of the cost as business expenses, and the IRS eventually found out.  Although he was accused of funneling large amounts of money through various entities to disguise the fact that the money was going to the mansion.  He pleaded guilty to one count of defrauding the United States government.  In September 2023, Nocito was sentenced to one year and one day in prison, followed by three days of supervised release.

Contact Gary E. Gerson About Financial Crimes

A criminal defense lawyer can help you if you are facing criminal charges for allegedly lying on your income tax returns.  Contact the law offices of Gary E. Gerson in Pittsburgh, Pennsylvania about your case.

Source:

cbsnews.com/pittsburgh/news/former-ceo-sentenced-bell-acres-mansion-tax-fraud-scheme/